KUALA LUMPUR (March 27): Oil and gas services provider Muhibbah Engineering (M) Bhd (KL:MUHIBAH) has increased its stake in Master-Pack Group Bhd (KL:MASTER) — whose shares recently hit a record high — to 31%.

Muhibbah Engineering, through its wholly-owned subsidiary ITS Konsortium Sdn Bhd, acquired a 22.9% stake or 12.54 million shares in Master-Pack on Tuesday and Wednesday for a total cash consideration of about RM54.65 million, translating to RM4.36 per share.

Prior to this latest acquisition, Muhibbah Engineering had bought 4.41 million shares or a 8.1% stake in Master-Pack for RM7.6 million in 2022.

Shares of Master-Pack surged to an all-time high of RM4.50 on Tuesday. At Thursday’s market close, the stock slipped two sen or 0.54% to RM3.68, giving it a market capitalisation of RM200.5 million.

Muhibbah Engineering is the second-largest shareholder in Master-Pack, trailing Yayasan Bumiputera Pulau Pinang Bhd, which holds a 32.47% stake. The foundation is represented by Datuk Seri Syed Mohamad Syed Murtaza, who also serves as Master-Pack’s executive chairman.

Muhibbah Engineering said that the acquisition would expand its earnings base and generate an additional stream of recurring income through equity accounting of Master-Pack’s financial results and dividend payouts.

Master-Pack’s net profit dropped 27% to RM18.19 million last year, mainly due to lower selling prices that squeezed margins. Revenue also fell 7% to RM154.95 million. Despite the weaker financial performance, the group declared a higher dividend per share of 18 sen, up from 12 sen in 2023.

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