KUALA LUMPUR (March 17): Concrete Engineering Products Bhd (KL:CEPCO), a prestressed spun concrete piles and poles maker, is settling a RM16.8 million debt to its major shareholder, Datuk Muhamad Fasri Samsudin, by transferring its 12.68% stake in Inch Kenneth Kajang Rubber PLC (KL:INCKEN) to him instead of paying cash.

Shares in Concrete Engineering Products hit an 18-year high of RM1.77 a day before the announcement. On Tuesday the stock ended nine sen or 5.14% lower at RM1.66, valuing the company at RM123.88 million.

Concrete Engineering entered into a settlement agreement with Muhamad Fasri for most of the RM19.37 million outstanding debt owing to him as at end-February, according to a bourse filing on Tuesday. The unsecured, non-interest-bearing debt was a short-term advance parked under non-trade payables according to its latest annual report.

According to a separate filing on Tuesday, about a 10.03% stake, or 38 million shares, held by Concrete Engineering Products Sdn Bhd in Inch Kenneth Kajang Rubber has been transferred via married deals. It ceased to be a substantial shareholder of Inch Kenneth Kajang Rubber after the disposal, slashing its shareholding to 13.09 million shares or a 3.46% stake.

Once the settlement agreement is completed, the company will no longer be a major shareholder in Inch Kenneth Kajang, keeping only a small 0.82% stake.

Muhamad Fasri will become the largest shareholder in Inch Kenneth Kajang with about 25.8% ownership, part of which he holds through his 60.5% owned FA Securities Sdn Bhd. Inch Kenneth Kajang has been making losses for 13 years but owns about RM530 million worth of land for development.

“The proposed settlement allows the company to settle its outstanding liabilities with the creditor without utilising cash resources. This will strengthen the company’s financial position by reducing gearing and interest costs,” it said.

The shares were priced at 35 sen apiece, a 1.7% discount to the stock’s five-day volume-weighted average market price up to March 16, 2026, of 35.6 sen.

“A loss of RM3.36 million is expected based on the carrying value of the shares in the company’s books,” it noted.

It anticipates completing the settlement by the end of this month.

The deal will see Muhamad Fasri tightening his control over Concrete Engineering Products, which counts Inch Kenneth Kajang as its largest shareholder, with a 19.32% stake. He owns another 15.46% through FA Securities. His daughter Fadhlina Muhammad Fasri is the company’s chief operating officer.

According to the Companies Commission Malaysia (SSM), FA Securities is 60.5% owned by Muhamad Fasri, Rantai Tiara Sdn Bhd (13.22%), Juta Pragmatik Sdn Bhd (13.14%) and Dome Heights Sdn Bhd (13.12%).

For the first quarter ended Nov 30, 2025 (1QFY2026), Concrete Engineering Products posted a narrower net loss of RM2.88 million, as compared to RM5.99 million a year earlier, as revenue rose 9% year-on-year to RM13.08 million.

At end-November 2025, Concrete Engineering Products’ cash pile stood at RM2.81 million.