Cover Story: The 30 biggest stocks sold to UJSB and how they are doing now

Thursday 17 Sep 2026

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This article first appeared in The Edge Malaysia Weekly on August 17, 2026 - August 23, 2026

URUSHARTA Jamaah Sdn Bhd (UJSB), a special purpose vehicle (SPV) established by Minister of Finance Inc in 2018, paid a hefty premium of RM9.38 billion to acquire Lembaga Tabung Haji’s (TH) equity portfolio comprising shares in 106 Bursa Malaysia-listed companies — a bold move by the then government to rejuvenate the pilgrim fund after it sank into deep financial trouble.

Telekom Malaysia Bhd (KL:TM), MISC Bhd (KL:MISC) and SD Guthrie Bhd (KL:SDG) are only three stocks that are currently trading at above trasferred value.

A significant portion of TH’s portfolio was in equities which are generally riskier than fixed-income instruments, making it highly vulnerable to volatility in stock market. Moreover, its investments were heavily concentrated in oil and gas (O&G) companies.

The collapse in crude oil prices beginning in 2014 deepened TH’s investment problems, given its high exposure to O&G stocks. The prolonged global downturn in the O&G sector, with crude oil price plunging below US$50, made it difficult for TH to recoup losses.

Of the eight securities transferred to UJSB at premiums exceeding 1,000%, six were connected to O&G. Some managed to turn around after restructuring, while others were delisted due to financial troubles that placed them under Practice Note 17 status. The latter included TH Heavy Engineering Bhd (THHE), Scomi Energy Service Bhd and Reach Energy Bhd.

Inflight caterer Brahim’s Holdings Bhd and Ikhmas Jaya Group Bhd (later renamed Top Builders Capital Bhd) were also delisted due to financial woes.

THHE was regarded as TH’s core investment in the O&G industry. TH emerged as a substantial shareholder in the company, then known as Ramunia Holdings Bhd, in late 2007. In 2012, the pilgrim fund became the controlling shareholder.

The fabricator’s 17-year journey as a public-listed entity was bumpy, falling into PN17 status twice. In 2008, MISC mulled a reverse takeover of Ramunia but that did not materialise due to “unsatisfactory due diligence findings”. TH, however, raised its stake.

Ramunia sold its its large fabrication yard in Teluk Ramunia, its crown jewel, to Sime Darby Engineering Sdn Bhd for RM530 million in 2011. But that did not seem to have strengthen its financial footing much.

THHE’s fabrication yard in Pulau Indah was blacklisted by Petroliam Nasional Bhd for four years from April 2016 to January 2020 because of non-performance of the Kinabalu Non-Associated Gas Development Project. The rest is history.

TH transferred 334.16 million shares plus 1.097 billion units of Islamic Irredeemable Convertible Preference Shares (ICPS). After conversion of the ICPS, UJSB owned 1.43 billion shares, or a 64.45% stake, in the company.

UJSB took over shares in Sapura Energy Bhd, now Vantris Energy Bhd (KL:VANTNRG), from TH at RM212.66 million, representing a 509% premium over the market value of RM34.92 million.

Sapura Energy undertook two recapitalisation exercises — a rights issue and a RM1.1 billion capital injection by the government to settle long-overdue payments to local vendors. After nearly seven years of recapitalisation and debt restructuring exercises, Vantris exited PN17 status two months ago.

Scomi Energy searched for a white knight while diversifying into construction but neither proposal produced a viable turnaround.

Reach Energy, a special purpose acquisition company (SPAC), acquired an oil-producing asset in Kazakhstan. The deal proved unfavourable as the company faced operational setbacks, leading to accumulated losses and disruptions linked to sanctions on Russia. It was eventually delisted in April 2025 after Bursa rejected a further extension of its regularisation plan.

MISC is probably one of the better-performing names on the list. UJSB took over 65.51 million MISC shares for RM486.53 million, equivalent to RM7.427 per share. At last Wednesday’s closing price of RM8.10, the same block would have been worth RM530.64 million before dividends. UJSB had, however, trimmed its holdings to 30.87 million shares as at March 4.

Axiata Group Bhd (KL:AXIATA), FGV Holdings Bhd, Malakoff Bhd (KL:MALAKOF), Maxis Bhd (KL:MAXIS), IJM Corp Bhd (KL:IJM) and UEM Sunrise Bhd (KL:UEMS) were the five stocks that carried the highest transfer values at above RM600 million (see table).

Thirty-nine stocks were transferred at premiums of more than 200%. Of these, 19 counters transferred at premiums above 500%.

Stocks that were transferred at premiums of over 1,000% were THHE and its irredeemable convertible preference shares (ICPS), Scomi Energy, Icon Offshore Bhd (now known as Lianson Fleet Group Bhd (KL:LFG), YLI Holdings Bhd (KL:YLI) and Alam Maritim Resources Bhd. (KL:ALAM)

Telco Axiata tops the list in terms of transferred value. UJSB took over a block of 237 million shares for RM1.42 billion, or RM6 per share, in 2018; it closed at RM1.82 last Wednesday. Had UJSB been a passive investor, holding onto Axiata shares till now, the SPV would have incurred a paper loss of RM990 million.

Some 283.7 million shares in FGV Holdings Bhd were transferred to the SPV at a value of RM1.31 billion, or RM4.62, representing a premium of RM1.1 billion. The plantation group was taken private by the Federal Land Development Authority (Felda) at RM1.30 per share on its second attempt in 2025. The block of FGV shares was valued at RM368.81 million at the offer, translating into loss of RM942 million. FGV was listed at an initial public offering (IPO) price of RM4.55 per share.

Notably, both Axiata and FGV declared regular dividends, which helped offset part of the losses. FGV, for instance, paid a special dividend of 11 sen in 2023.

Shares of Malakoff and Maxis have also declined substantially in value. The block of 500 million Malakoff shares transferred to UJSB is worth RM420 million, based on last Wednesday’s closing price of 84 sen — a far cry from the transfer value of RM901.98 million, or RM1.80 per share, about six years ago.

Malakoff’s latest annual report shows UJSB held 327.66 million shares in the company on Feb 20. The company was relisted at an IPO price of RM1.80 in 2015, with TH being among the cornerstone investors. The power producer’s dividend payments — the main attraction of utility stocks — were constrained by its high borrowings (it has a net gearing of 1.3 times). Furthermore, Malakoff has not been able to fill the void left by the decommissioning of its old power plants.

TH is now on a clean slate as UJSB absorbed its non-performing assets. Hopefully, the focus won’t shift to the SPV in the future.

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