KUALA LUMPUR (June 13): Sabah-based palm oil company Kretam Holdings Bhd (KL:KRETAM) has seen the emergence of its new second-largest shareholder in the form of a consortium.

According to Companies Commission of Malaysia (SSM) data, the consortium — led by DCAH Holdings Sdn Bhd, along with individuals Chiong Kiau and Chiong Hang Leong — acquired 232.95 million shares, representing 10% of Kretam’s equity, through direct business transactions.

DCAH Holdings is jointly owned by Teo Soh Ling and Chiong Sin Yee. The 10% stake is valued at around RM162 million based on Kretam’s closing share price of 69.5 sen.

The acquisition comes at a time when food oil prices have re-rated higher in recent years, amid persistent geopolitical tensions and weather disruptions that weighed on supply.

Kretam operates nearly 17,000 mature hectares producing over 300,000 tonnes of fresh fruit bunches, with a 135 metric tonne-per hour palm oil mill capacity, 1,500 tonne-per-day crude palm oil processing capacity, and 300 tonne-per-day of palm oil-based biodiesel fuel called PME.

Kretam’s bourse filing indicated that the acquisition was executed via two entities controlled by the consortium — Kahang Palm Oil Mill Sdn Bhd and Jeng Huat (Bahau) Realty Sdn Bhd.

Kretam’s largest shareholder, its chief executive officer Datuk Lim Nyuk Sang @ Freddy Lim — who had in the past year pared over a 4% stake — further sold a 5% stake off-market on Friday. It is unclear who sold the remaining 5% stake to the consortium.

Part of the transactions were done at a premium of 7.9% to Kretam's closing price, Bloomberg data showed.

Nyuk Sang remains the largest shareholder in Kretam, with a 38.36% direct stake and another 16.94% held via his child and Staraprise Sdn Bhd.

Nyuk Sang’s brother Datuk Lim Nyek Kiong @ Lim Nyuk Min is now Kretam’s third largest shareholder with a 6.25% stake held through Mingo Development Sdn Bhd.

Aside from its oil palm business, Kretam also owns a 14.55% indirect stake in Sabah-based gold miner Aumas Resources Bhd (KL:AUMAS), formerly known as Bahvest Resources Bhd, and is its largest shareholder.

Kretam unit Innosabah Capital Holdings Sdn Bhd invested RM43.73 million to acquire Bahvest shares at 28.87 sen apiece back in October 2023, before raising its stake via warrant conversions.

In the last financial year ended Dec 31, 2024 (FY2024), improvements in its milling and refinery operations drove Kretam's 61% year-on-year rise in net profit to RM174.8 million, despite a 6.9% decline in revenue to RM730 million.

This positive momentum continued into the latest quarter ended March 31, 2025 (1QFY2025), where net profit surged 71% to RM28.04 million, despite a 5.1% decline in revenue to RM167.1 million.

At 69.5 sen per share, Kretam is valued at RM1.62 billion. Year to date, the stock has gained 19.8%.