KUALA LUMPUR (Jan 13): Velocity Capital Partner Bhd (KL:VELOCITY) has sold off its entire 6.46% stake in MMAG Holdings Bhd (KL:MMAG) for RM9.43 million, citing exposure to further downside risks.
Velocity Capital, via the open market, disposed of 32.6 million shares in MMAG — equivalent to a 1.4% stake — on Jan 9 for RM2.12 million and 117.4 million shares (5.06% stake) on Jan 12 for RM7.306 million, according to a bourse filing on Tuesday (Jan 13).
The disposal comprised its entire 150 million shares or 6.46% stake in MMAG, which it acquired back in March 2025 for RM60 million or 40 sen apiece.
The Jan 9 disposal was priced at the market price of 6.5 sen apiece while the Jan 12 sale averaged at 6.224 sen per share — a 3.73% premium to the counter’s Jan 12 close of six sen.
The company saw a fair value loss of RM50.25 million on its investment and a further RM324,024 loss versus its carrying value as at Jan 9.
Explaining the disposal, Velocity Capital said the company considered maintaining its investment in MMAG, exposing it to further downside risk, following a careful evaluation of the market environment and continued downward movement of MMAG’s share price.
It said the strategic investment was made back in March 2025 with the intention to strengthen the existing business collaboration between its transportation and logistics arm Line Haul Sdn Bhd and MMAG’s unit Line Clear Express Sdn Bhd.
“Subsequent to the investment, due to adverse market conditions and continued volatility in MMAG’s share price, the value of the group’s investment declined significantly,” it noted.
Against March 3, 2025’s close of 50 sen, the counter is down 89% to 5.5 sen at Tuesday’s close.
Velocity Capital noted its executive director See Toh Kean Yew sits on MMAG’s board as a non-interested and non-executive director, as the company’s board representative.
Velocity Capital's disposal follows a major change in hands of a substantial block of MMAG shares.
Earlier this month, Datuk Seri Farhash Wafa Salvador Rizal Mubarak disposed of a 462 million block of shares (20.16% stake) to Future Star Sdn Bhd, a Penang-based holding company owned by Cheah Min Lly.
Future Star’s MMAG shares were tied to Velocity Capital’s moneylending arm, Velocity Capital Sdn Bhd. Previously, Farhash’s holdings were also parked under a pledged securities account with Velocity Capital.
Shares in Velocity Capital were unchanged at 4.5 sen at the noon break, valuing the company at RM55.95 million.
MMAG shares closed down half a sen or 8.33% at 5.5 sen, valuing the company at RM118.55 million.