KUALA LUMPUR (Dec 18): Ge-Shen Corp Bhd (KL:GESHEN) executive director Lee Hai Peng has emerged as a substantial shareholder of the contract manufacturer.

Lee acquired 1.05 million shares (a 0.82% stake) for RM3.99 million or RM3.80 apiece on Tuesday, raising his stake in Ge-Shen to 5.41% or 6.95 million shares, according to the company’s bourse filing on Wednesday.

The RM3.80 per share price tag represents a 5.71% discount to Tuesday’s closing price of RM4.03. 

Since being appointed executive director on June 6, 2023, Lee has gradually built up his shareholding in Ge-Shen. On the day of his appointment, he acquired 4.2 million shares or a 3.27% stake.

Besides Lee, Ge-Shen’s substantial shareholders comprise executive chairman Datuk Keh Chuan Seng, with a 28.01% stake via Frazel Group Sdn Bhd, followed by Chin Hin Group Bhd’s (KL:CHGP) Chiau family, with a 22.68% stake via Enrich Signature Sdn Bhd. 

The Chiau family emerged as Ge-Shen’s second-largest shareholder back in April, a month after Ge-Shen announced plans to acquire a 40% stake in electronics manufacturing services (EMS) firm Local Assembly Sdn Bhd for RM48 million from co-founders Chai Voon Sun, Gurmakh Singh Ajmer Singh and Wee Thian Song.

The acquisition was greenlit by Ge-Shen’s shareholders at an extraordinary general meeting (EGM) in October. Ge-Shen is acquiring a 25% stake in Local Assembly from Chai, 9% from Gurmakh and 6% from Wee.

Local Assembly is 37.5%-owned by Chai, while Gurmakh has 22.5% and Wee owns 15%; Divine Inventions Sdn Bhd owns 20%, while Proven Venture Sdn Bhd holds the last 5%.

Divine Inventions is 55%-owned by Chin Hin Group executive chairman Datuk Seri Chiau Beng Teik.

Shares in Ge-Shen ended three sen or 0.74% lower at RM4 on Wednesday, valuing the company at RM513.7 million.