This article first appeared in The Edge Malaysia Weekly on June 29, 2026 - July 5, 2026
Last week, building materials manufacturer Ajiya Bhd (KL:AJIYA) announced that it had disposed of 49.95 million Tanco Holdings Bhd (KL:TANCO) shares through off-market transactions between April 29 and June 24 at an average price of 88.7 sen apiece.
What is worth highlighting is that Ajiya’s disposals took place ahead of and during Tanco’s dramatic share price collapse.
From the sale of Tanco shares, Ajiya generated total proceeds of RM44.31 million, with a gain of RM14.32 million, based on its original cost of investment of RM29.995 million, or about 60 sen per share.
Ajiya said the disposal was undertaken as part of its capital management strategy to realise value, with proceeds earmarked for working capital requirements. Following the disposal, its stake in Tanco was reduced to 0.76% from 1.59%. The remaining 0.76% stake works out to around 46 million shares, with their original cost unknown.
Despite the sharp decline in Tanco’s share price in the space of a month, Ajiya has decided to hold on to the remaining 46 million shares. This raises the question of how the company will be affected by the shareholding. Will it be able to recoup its original investment?
Since June 3, Tanco’s share price has fallen sharply, wiping about RM10 billion off its market capitalisation after multiple consecutive limit-down trading sessions.
At market close last Friday, Tanco’s share price stood at 13.5 sen, giving the company a market capitalisation of RM813.4 million. Meanwhile, Ajiya ended trading at RM1.02, for a market capitalisation of RM559.3 million.
Interestingly, Chin Hin Group Bhd (KL:CHINHIN) is the largest shareholder of Ajiya, with a 74.43% stake, having emerged as a substantial shareholder in March 2022 with 24.68% equity interest — then its largest acquisition since its 2016 listing.
Save by subscribing to us for your print and/or digital copy.
P/S: The Edge is also available on Apple's App Store and Android's Google Play.