KUALA LUMPUR (June 22): Eduspec Holdings Bhd (KL:EDUSPEC) said Salcon Bhd (KL:SALCON) executive deputy chairman Tan Sri Tee Tiam Lee has ceased to be a substantial shareholder after disposing of 60 million shares, representing a 4% stake, in an off-market transaction.

The shares were acquired by Eduspec group chief executive officer Datuk Seri Gan Chow Tee, whose stake in the integrated education services provider rose to 12.98%, according to a separate Bursa Malaysia filing.

Tee became a substantial shareholder less than a year ago after subscribing to 111.1 million new shares, representing a 7.86% stake, through a private placement completed on July 24, 2025.

Despite the increase in Gan's stake, Eduspec's largest shareholder remains executive chairman Datuk Kang Pang Kiang, who holds an effective 13.4% interest in the company, comprising a 6.82% direct stake and a 6.58% indirect interest through EG Industries Bhd (KL:EG), where he serves as chief executive officer.

Other substantial shareholders include SEM Global Sdn Bhd with a 9.4% stake and UOU Resources Sdn Bhd with 5.3%.

The private placement that brought Tee into the company involved the issuance of 234.9 million new shares and raised RM30.54 million.

Under the exercise, the first tranche of 105 million shares was issued at 9.61 sen apiece, followed by 45 million shares at 9.32 sen, 10 million shares at 10 sen and a final tranche of 74.9 million shares at 10.01 sen each.

The proceeds had been earmarked to fund Eduspec's diversification into testing services for electrical and electronic (E&E) components and have been fully utilised.

Eduspec has been in the red since FY2017.

For the financial year ended Feb 28, 2026 (FY2026), the group narrowed its net loss to RM4.95 million from RM32.8 million a year earlier, while revenue rose 20.2% to RM50.67 million from RM42.16 million.

Shares of Eduspec closed unchanged at eight sen on Monday, valuing the company at about RM120 million. The stock has declined nearly 40% over the past 12 months.