KUALA LUMPUR (Oct 30): Mega Fortris Bhd (KL:MEGAFB) said its major shareholders had obtained a court order seeking details of March share transactions involving one particular shareholder, in response to a Bursa Malaysia query over a two-day sell-off that wiped out more than RM1 billion in market value.
In a filing with Bursa Malaysia on Friday, Mega Fortris said its non-independent non-executive chairman Datuk Ng Meng Kee and substantial shareholder Mega Fortris Global Pte Ltd had obtained a Kuala Lumpur High Court order against Affin Hwang Nominees Tempatan Sdn Bhd.
However, the security seals manufacturer said it was unable to determine whether the court order had any connection with the sharp decline in its share price, adding that it was unaware of any undisclosed corporate developments or rumours that could explain the trading activity in response to Bursa Malaysia unusual market activity query. It did not disclose when the court action was initiated or when the order was granted.
Under the order, Affin Hwang Nominees are required to produce documents detailing its legal and commercial relationship with Safari Asia Ltd, as well as records of transactions involving Mega Fortris shares held in custody for Safari Asia, specifically five transactions between March 25 and March 31, 2026.
According to Bloomberg data, during the period, Mega Fortris’ shares fell to 76.4 sen a share on March 27, 2026 from RM1.03 a share on March 25, 2026 before going back up to RM1.06 a share on March 31, 2026. An average of 23 million shares were traded during the period.
The five transactions involved 17.74 million shares out of the 42 million Mega Fortris shares held by Affin Hwang Nominees for Safari Asia, which acted for Brookland Group & Partners Ltd. The 42 million shares represent just under the 5% threshold for substantial shareholding.
The documents must be made available to Ng and Mega Fortris Global, or their solicitors, for inspection and copying within 21 days of the court order being served.
Mega Fortris stressed that the court order only concerned the disclosure of documents and information, and that it had not been informed of the outcome of the exercise or any findings arising from it.
"Accordingly, the board is presently unable to ascertain whether the matters referred to in the court order have any connection with, or provide any explanation for, the trading activity," the company said.
Ng has a 1.828% direct and a 65.041% indirect stake in Mega Fortris through Mega Fortris Global and his son, Aaron Mikhel Ng Khye Weng.
Mega Fortris also confirmed that it was complying with Bursa Malaysia's Main Market Listing Requirements, particularly those concerning immediate disclosure obligations.
The clarification follows a two-day rout that wiped out more than RM1 billion in Mega Fortris' market capitalisation, after its shares plunged from RM3.45 on Wednesday to RM2.22 on Friday.
The stock fell 71 sen or 20.6% on Thursday to RM2.74, before declining another 52 sen or 19% on Friday to RM2.22, valuing the company at RM1.88 billion.
On Friday, the counter opened at RM3 before plunging to an intraday low of RM2.07, prompting Bursa Malaysia to issue the unusual market activity (UMA) query.
Short selling of Mega Fortris shares was also suspended for a second consecutive day, with trading scheduled to resume on Monday.
Prior to the sell-off, Mega Fortris had been on a steady upward trajectory, having started the year at 87.4 sen before climbing to an all-time high of RM3.48 on Thursday morning.
The sharp decline coincided with a similar sell-off in GIIB Holdings Bhd (KL:GIIB), another company linked to Ng, in which he holds about 15% interest.
GIIB, a rubber compounds manufacturer, also received a UMA query from Bursa Malaysia after its shares plunged 23.9% on Thursday, followed by another 33.3% decline on Friday to close at 36 sen.
In its response to Bursa Malaysia on Friday, GIIB similarly said it was unaware of any undisclosed corporate developments or rumours that could explain the sharp fall in its share price.
The two-day sell-off wiped out RM289 million in GIIB's market capitalisation, leaving the company valued at RM297.5 million.