KUALA LUMPUR (March 28): MMAG Holdings Bhd (KL:MMAG) on Friday announced that Datuk Farhash Wafa Salvador has emerged as its largest shareholder, after acquiring a 20% stake or 462 million shares earlier this week.

He has also been appointed chairman of the company.

Farhash, formerly the political aide to Prime Minister Datuk Seri Anwar Ibrahim and Perak PKR chief, made the acquisition through a direct business transaction on March 26, according to MMAG’s filing with Bursa Malaysia.

The purchase price was not disclosed, but a check with Bloomberg showed that the 462 million shares were transacted off-market in four tranches at 40 sen apiece, amounting to RM184.8 million.

At 40 sen per share, this represents a 65% discount to MMAG’s closing price of 66 sen on March 26. MMAG did not disclose the seller of the shares or any other shareholding change.

Currently, MMAG’s substantial shareholders include NexG Bhd (KL:NEXG) with a 9.53% stake and Velocity Capital Partner Bhd with a 6.49% stake.

NexG, formerly known as Datasonic Group Bhd, first purchased 45 million shares, or a 1.95% stake, for RM18 million on March 5, before acquiring another 175 million shares, or a 7.58% equity interest, from previous major shareholder Chan Swee Ying for RM70 million, or 40 sen per share, on March 27.

Meanwhile, Velocity Capital Partner bought 150 million shares from Chan on March 3 at 40 sen per share, totalling RM60 million in cash.

Chan — who resigned as an alternate director of MMAG on March 27 and is no longer a substantial shareholder — is left with a 4.65% stake, or 107.4 million shares.

MMAG’s share price has been on a steep climb since mid-March, reaching a record high of 78 sen on March 21 before selling pressure caused a pullback over the next two trading days.

Selling pressure was particularly heavy on March 24, when MMAG’s stock plunged by 13.5 sen, or 17.3%, to 64.5 sen.

At market close on Friday, MMAG gained five sen, or 7.75%, to settle at 69.5 sen, valuing the company at RM1.61 billion. Year-to-date, the stock has surged over 54%.

In a separate filing, MMAG announced that Farhash has also been appointed chairman, replacing Tan Sri Mohd Khairul Adib Abd Rahman, who resigned on March 24.

Additionally, NexG’s chief financial officer Hajah Erna Ismail has been appointed as a director of MMAG.

Farhash currently holds directorships in four other public-listed companies, namely Apex Equity Holdings Bhd (KL:APEX), Excel Force MSC Bhd (KL:EFORCE), 7-Eleven Malaysia Holdings Bhd (KL:SEM) and Key Alliance Group Bhd (KL:KGROUP).

Farhash was in the news last year after emerging as a substantial shareholder in HeiTech Padu Bhd (KL:HTPADU), shortly before the company secured a RM190.01 million contract from the Ministry of Transport.

Critics alleged that HeiTech Padu won the large contract due to Farhash’s ties to Anwar.

However, Transport Minister Anthony Loke subsequently clarified that the tender process was completed before Farhash became a substantial shareholder.

Farhash ceased to be a substantial shareholder of HeiTech Padu in April 2024.

Read also:
Velocity Capital acquires 6.5% stake in former shareholder MMAG for RM60 mil
NexG emerges as MMAG's substantial shareholder with 9.53% stake
After MyEG, Farhash Wafa emerges as substantial shareholder in HeiTech Padu