KUALA LUMPUR (June 15): Describing the scale of the decline in its share price since June 8 as odd, Tanco Holdings Bhd (KL:TANCO) on Monday assured shareholders that its business operations, property development, and contractual obligations remain unaffected.
The property developer said it does not comment on share price movements but has decided to issue a statement on the matter, noting "the recent, rapid and unprecedented share price fall appears odd".
“All of Tanco’s fundamental businesses, along with its major projects and contracts, were sound and intact prior (to the price decline) and are still so, and that it has always maintained strict adherence to market disclosure regulations,” said the group in the statement.
Noting that it had responded to the second unusual market activity query from Bursa Malaysia Securities, Tanco reiterated that it was unaware of any undisclosed corporate developments that would explain the trading pattern.
The group told property buyers that its ongoing projects did not face cancellation or suspension as a result of the trading turmoil.
Tanco’s stock has fallen sharply since early June, hitting limit-down on several consecutive trading days, and wiping out about RM9.5 billion from its market capitalisation. During the period, it also saw heavy share trading by group managing director Datuk Seri Andrew Tan Jun Suan. From Jan 1 to June 10, Tan had 241 notices of share transactions conducted in 95 trading days.
On Monday, its shares hit their lowest since January 2024 as they fell as much as 40% or eight sen to 12 sen before settling at 13 sen, with more than 327 million shares changing hands. At its last price, Tanco has a market value of RM828.1 million.
Tan owns an 18.955% direct stake and a 34.622% indirect stake in Tanco, held by his investment vehicle TJN Capital Sdn Bhd.
In the statement, Tanco said its property developments, which includes the Smart AI Container Port and the Port Dickson Free Zone in Negeri Sembilan, are proceeding on schedule, with no change to their regulatory, technical, financing or commercial timelines.
It added that the container port is still undergoing technical and regulatory approvals.
Addressing its recent memorandum of understanding signed with China Mobile International Ltd, it said that the arrangement is still at an early, exploratory stage and is not expected to provide earnings in the near term. The deal includes the exploration of a 50-megawatt data centre in Port Dickson.
On June 12, Bursa Malaysia froze the lower-limit price of Tanco’s shares at 20 sen, which was the previous day’s closing price. The move came after the stock reached its maximum allowed decline in a single trading session for four consecutive days.
Before the stock fell off a cliff, it had rallied for more than two years. The stock climbed from the 25 sen level in early 2024 to a peak of RM1.76 on June 3, giving it a market capitalisation of RM10.8 billion then.
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