KUALA LUMPUR (Dec 27): Cocoaland Holdings Bhd co-founder Lau Pak Lam has ceased to be a substantial shareholder in PUC Bhd (KL:PUC) after disposing of 100 million shares or a 3.6% stake in the digital payment solutions provider via a direct business transaction on Dec 23.
Following the disposal, Lau is left holding 118.5 million shares or a 4.26% stake in the ACE Market-listed PUC. Lau first surfaced as a substantial shareholder in January.
A separate filing with Bursa Malaysia on Friday also showed that PUC group managing director and group chief executive officer (CEO) Cheong Chia Chou had disposed of 40 million shares or 1.44% in the company for RM2 million or five sen per share on the same day. Post-disposal, Cheong owns a direct stake of 182.94 million shares or a 6.58% stake in PUC.
The 140 million shares or 5.04% equity interest appeared to have been scooped up by businessman Datuk Seri Ting Teck Sheng, who has emerged as PUC's new substantial shareholder. Ting is group CEO of Richwood Ventures Bhd, an investment holding company engaged in the technology industry.
At the same time, Liew Fook Meng, also a co-founder of Cocoaland Holdings, has upped his stake in PUC by acquiring another three million shares on the open market, bringing his shareholding to 244.55 million shares or an 8.8% stake.
Separately, PUC announced that Pictureworks International Holdings Ltd, an associated company in which PUC holds 27.53% equity interest, had on Thursday made a public filing with the US Securities and Exchange Commission (SEC) for its proposed listing on Nasdaq.
"Pictureworks is currently in the process of meeting the necessary regulatory requirements for the listing, which remains subject to the approval of the relevant authorities and compliance with all applicable regulations," said PUC.
The board of directors is currently assessing the financial impact of the proposed listing on PUC. It said any material change to the valuation of the company’s 27.53% equity interest in Pictureworks, arising from the listing, will be reflected in its future financial statements. At this juncture, the listing is not expected to have an immediate operational impact on PUC’s core business activities.
The proposed listing of Pictureworks on Nasdaq is subject to the receipt of all necessary regulatory approvals and the successful completion of the listing process. At this juncture, the timeline for the proposed listing has not been finalised, said PUC.
On Dec 17, PUC announced its acquisition of digital marketing and business management consultancy firm Alevate Solutions Sdn Bhd (ASSB) for RM100 million, to be satisfied entirely in shares.
The purchase consideration, 800 million shares at 12.5 sen apiece, would dilute Cheong’s stake to 5.11%. The valuation of the consideration shares represents a 177% premium to PUC’s 4.5 sen closing price on Friday.
The deal would also see ASSB’s sole shareholder and director Tham Lih Chung emerge as PUC’s new single-largest shareholder with a 22.35% stake, based on the company's enlarged share base.
Attached to the deal is Tham’s guarantee for ASSB to achieve a minimum aggregate profit after tax of RM12.5 million over two years.
On an annual basis, PUC has been loss-making since 2019. For its first financial quarter ended Sept 30, 2024 (1QFY2025), the company posted a net loss of RM11.45 million versus a net profit of RM1.01 million in the same period last year, as revenue dropped 67% to RM4.9 million from RM14.67 million. 1QFY2024 was the company's sole profitable quarter in the past four years.
PUC shares closed unchanged at 4.5 sen on Friday, valuing the company at RM125 million. The stock has fallen 10% so far this year.