KUALA LUMPUR (Oct 13): Genting Bhd (KL:GENTING) CEO Datuk Seri Tan Kong Han bought 400,000 shares in the group on Monday, when its stock fell to a near two-decade low.
According to a filing with Bursa Malaysia on Tuesday, Tan acquired 200,000 shares at RM1.58 apiece and another 200,000 shares at RM1.54 apiece on Oct 12, for a total of RM624,000.
His previous share purchase was on Sept 29, when he acquired 200,000 shares at RM1.87 apiece.
Following the latest acquisitions, Tan, who is also president and an executive director at the group, holds 1.89 million shares directly, representing a 0.049% stake in the group. He also has an indirect or deemed interest in 100,000 shares, equivalent to 0.003%.
Tan’s purchases came as Genting lost more than RM2 billion in market value on Monday, with its share price falling to RM1.45.
The selling pressure followed Genting’s Oct 9 announcement of a RM1.25 billion rights issue to reduce debt. While some analysts warned of earnings and dividend dilution, others said it would provide a cheaper way to raise funds amid rising borrowing costs and major commitments in the US and Singapore.
On Tuesday, CreditSights said the group may need to sell non-core assets, particularly unused land to reduce its debt burden and avoid further credit rating downgrades.
Genting’s shares remained under pressure on Tuesday, hitting an intraday high of RM1.50 before falling to an intraday low of RM1.44 and closing at that level, down one sen or 0.69%.
The stock was among the most actively traded on Bursa Malaysia, with about 20.7 million shares changing hands.