NexG Bhd has emerged as a substantial shareholder of MMAG Holdings Bhd after acquiring 175 million shares for RM70 million cash, representing an equity interest of 7.58% in MMAG, bringing its stake to 9.53%. NexG had purchased 45 million shares or a 1.95% stake in MMAG for RM18 million on March 5.
KUALA LUMPUR (March 27): NexG Bhd (KL:NEXG), formerly known as Datasonic Group Bhd, is now a substantial shareholder of MMAG Holdings Bhd (KL:MMAG) with a 9.53% stake.
This comes after NexG acquired 175 million shares representing an equity interest of 7.58% in MMAG for RM70 million or 40 sen per share, cash, via a direct business transaction on Thursday.
The stake was acquired entirely from Chan Swee Ying, who resigned as an alternate director of MMAG, and ceased to be a substantial shareholder of the company on the same day.
The shares acquisition, at 40 sen apiece, represents an approximate 38% discount against MMAG's closing price of 64.5 sen on Thursday.
NexG had purchased 45 million shares or a 1.95% stake in MMAG for RM18 million on March 5.
"This investment provides an opportunity for the company to diversify into other segments, such as investing in MMAG’s supply chain management business," NexG said in a filing with Bursa Malaysia.
"NexG could deliver a comprehensive security and ID solution with integrated logistics support by leveraging MMAG’s logistics, warehousing, and aviation services," it added.
It is worth noting that former Public Service (KPPA) director general Tan Sri Mohd Khairul Adib Abd Rahman had on March 24 surfaced as a substantial shareholder in NexG.
On the same day, he also resigned as chairman of MMAG to "pursue other interests".
On Monday, intraday short selling of MMAG shares was suspended after the counter fell as much as 17.5 sen, or 22.44%, to an intraday low of 60.5 sen.
On Thursday, MMAG closed down 1.5 sen, or 2.27%, at 64.5 sen, with a market capitalisation of RM1.49 billion. NexG closed unchanged at 25.5 sen, with a market capitalisation of RM757.6 million.
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