KUALA LUMPUR (Sept 2): APB Resources Bhd (KL:APB) has seen the emergence of Strategic A Holdings Sdn Bhd as its largest shareholder, following a management-led buyout at its wholly-owned subsidiary, Amalgamated Metal Corporation (M) Sdn Bhd (AMC).

The buyout was spearheaded by AMC’s general manager Ong Kok Wah, deputy general manager Chan Fook Wah and Lee Lisa, who collectively acquired a 27.89% stake — equivalent to 34.36 million shares — via Strategic A Holdings in a direct business transaction last Thursday.

Bloomberg data shows the block was transacted at 29 sen per share, reflecting a 45% premium to APB’s last traded price of 20 sen on Aug 28. The stock remained untraded in the next two trading sessions.

Following the deal, Ong was appointed executive director and chief executive officer of APB. In a press release, the group highlighted Ong’s three-decade tenure, beginning in 1993 as a quality control engineer and culminating in his leadership role at AMC.

“As a management team, we have lived and breathed APB for decades. We understand this business at every level — from operations to finance — and we see immense potential ahead. With our expertise, our client base and our fabrication capabilities, APB has a strong foundation. Together, we are committed to restoring financial strength, sharpening execution and positioning the group for long-term success,” the trio said in a joint statement.

In a separate filing, APB disclosed that its former non-executive chairman Cha Weay Chia had divested his entire 8.67 million shares — representing a 7.04% stake — via the same direct business deal. Prior to the transaction, Cha was APB’s largest individual shareholder. He stepped down the following day, citing personal reasons and other commitments.

In July, APB’s external auditor Messrs Morison LC PLT issued a qualified opinion on its audited financial statements for the year ended March 31, 2025 (FY2025), citing RM28.78 million in advance payments made in FY2024 that were later aborted and refunded. The auditor was unable to obtain sufficient evidence to verify the transactions, which involved factory upgrades, software, pipe supply, a proposed acquisition and tendering activities.

For the first quarter ended June 30, 2025 (1QFY2026), APB posted a net loss of RM298,000, reversing a RM37.35 million profit a year earlier, which had been largely driven by building revaluations. Revenue was largely unchanged at RM25.69 million.

Its total share capital stood at RM116 million, with accumulated losses of RM73.25 million.

A key point of contention on APB was its acquisition of a 10.36% stake — equivalent to 70 million shares — in Globetronics Technology Bhd for RM140 million, or RM2 per share, in February 2024.

The purchase came at a steep premium to the RM1.50 trading range at the time. With Globetronics last closing at 30 sen, APB is currently sitting at a paper loss of RM119 million.