KUALA LUMPUR (March 14): HHRG Bhd’s largest substantial shareholders, Ch’ng Chen Mong and Tan Poh Cheng, have disposed of their entire 17.77% stake in the Penang-based biomass material manufacturer at a steep discount.
Ch’ng and Tan, through their private vehicle Cfamillie Holdings Sdn Bhd, offloaded 154.3 million shares via an off-market transaction on March 11, according to HHRG's filing with the local exchange on Friday.
A check with Bloomberg showed that 154.3 million HHRG shares changed hands at half a sen apiece, amounting to RM771,450. The transaction price represents a sharp 94% discount to the closing price of nine sen on March 11.
As at time of writing, HHRG had not disclosed the identity of the new substantial shareholder.
Notably, Ch’ng, Tan, and Cfamillie Holdings Sdn Bhd sued HHRG in August last year, alleging fraudulent inducement in agreements related to the transfer of shares.
The lawsuit involves shares in HHRG’s 51%-owned subsidiary, MG Furniture Sdn Bhd (MGF), and its wholly owned subsidiary, MG Furniture Innovation Sdn Bhd (MGFI).
The three parties claimed that they were fraudulently induced in 2021 by former group executive chairman Datuk H’ng Choon Seng and Goh Boon Leong to sign several agreements, including the share sale agreement (SSA), shareholders' agreement (SHA), profit guarantee agreement (PGA), supplemental profit guarantee agreement (SPGA), and escrow agreement (EA).
H’ng and Goh are substantial shareholders of HHRG, currently holding a 13.85% stake through GH Consortium Sdn Bhd.
Shares in HHRG closed unchanged at nine sen on Friday, giving the company a market capitalisation of RM86.53 million. Year-to-date the stock is down 25%.