KUALA LUMPUR (June 22): Sunview Group Bhd (KL:SUNVIEW) has proposed to dispose of its entire 22.44% stake in Winstar Capital Bhd (KL:WINSTAR) for RM30.1 million cash to nine investors.
The stake, comprising 70.03 million shares, will be sold at 43 sen per share under nine separate agreements signed on Monday, according to a bourse filing. The disposal price represents a 23.9% discount to Winstar's last closing price of 56.5 sen.
Four of the purchasers are key management personnel and substantial shareholders of Winstar, namely vice-chairman Chua Nyok Chong, chief executive officer Chua Boon Hong, chief operating officer Lee Yong Zhi and chief marketing officer Khoo Nee Cheng.
The remaining buyers are Datuk Low Chin Koon, who is non-executive chairman of Tex Cycle Technology (M) Bhd (KL:TEXCYCL) and an independent non-executive director of Mestron Holdings Bhd (KL:MESTRON), K Seng Seng Corporation Bhd and Prolexus Bhd; Por Teong Eng, managing director of Mestron; Chu Kerd Yee, executive director of ES Sunlogy Bhd (KL:SUNLOGY); as well as Ng Cheng Keng and Phuah Hue Shun.
Sunview said the disposal price represents a premium of 65.4% to its investment cost of 26 sen per share and a 16.2% premium to the stake's net book value of 37 sen per share as at Sept 30, 2025. The company expects to record a gain on disposal of about RM6.8 million upon completion of the transaction.
Of the proceeds, RM18.1 million will be used as working capital for engineering, procurement, construction and commissioning projects, while RM11.8 million will be allocated towards repayment of bank borrowings.
Sunview said it had invested RM18 million in Winstar Aluminium Manufacturing Sdn Bhd in 2023.
The company said the disposal would enable it to realise the value of its investment while strengthening its cash flow position, reducing gearing and preserving debt capacity for future projects.
On the rationale for the share sale agreements, Sunview said disposing of the stake through the open market could have placed significant downward pressure on Winstar's share price given its relatively low trading liquidity.
The 70.03 million shares represent about 21.3 times Winstar's average monthly trading volume over the past six months and 6.4 times the average monthly trading volume over the past 12 months.
The proposed disposal is subject to shareholders' approval and is expected to be completed by the first quarter of 2027.
Based on Sunview's audited financial statements as at Sept 30, 2025, the transaction would improve its net asset per share to 19 sen from 17 sen and reduce its gearing ratio to 1.58 times from 1.82 times on a pro forma basis.
Shares in Sunview closed down 0.5 sen or 1.3% at 37 sen on Monday, giving the company a market capitalisation of RM223.3 million. The stock has fallen 5.1% over the past year.
Winstar ended unchanged at 56.5 sen, valuing the company at RM176.4 million. The stock has gained 4.6% over the same period.