KUALA LUMPUR (Jan 14): Hillcove Sdn Bhd, which was the largest shareholder of Sersol Bhd (KL:SERSOL), has disposed of its entire 13.67% stake in the chemical manufacturer.

Hillcove sold the stake, comprising 100 million shares, in an off-market deal on Jan 9, according to Sersol’s bourse filing on Monday. The filing did not indicate the transaction value.

Based on Sersol's closing price of eight sen on Jan 9, Hillcove could have disposed of the stake for about RM8 million.

Hillcove surfaced as Sersol's largest shareholder in July 2023, shortly after Sersol's former chief executive officer, Datuk Wira Justin Lim Hwa Tat, was under investigation by the Malaysian Anti-Corruption Commission (MACC) over a RM2.5 million payment to HGC Legacy Enterprise.

Meanwhile, the cash-strapped company also announced on Monday that Forever Famous Sdn Bhd — a firm owned by Sersol's executive director Datuk Mohamed Suffian Awang —  has emerged as its new largest shareholder after it bought 100 million shares on Jan 10. The transaction value was not disclosed.

Based on Sersol’s closing share price of 7.5 sen on Jan 10, Forever Famous could have paid RM7.5 million for the stake.

Mohamed Suffian was appointed to the company's board in August 2023. The former political secretary to former prime minister Datuk Seri Najib Razak was appointed by shareholders at an extraordinary general meeting called by Hillcove in August 2023.

Also appointed as directors at the EGM were Alan Ling Sie Kiong and Tan Tong Lang. They replaced Sersol's former chairman Datuk Lim Tiong Siang, Shazreen Mohd Hatta and Sia Meng Chan, who were removed from the board. Tiong Siang is the father of Hwa Tat.

Shares of Sersol closed unchanged at 7.5 sen on Monday, valuing the company at RM51.43 million.

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