This article first appeared in Capital, The Edge Malaysia Weekly on January 21, 2019 - January 27, 2019
ON Jan 14, Tatt Giap Group Bhd saw 23.7 million shares, or a 10.6% stake, change hands in a direct deal worth RM3.32 million, or 14 sen apiece. In comparison, its shares were traded at between 14.5 sen and 17.5 sen on the open market before closing at 14.5 sen, indicating a discount of 3.4% to 20% on the off-market trade.
Recently, Dynaciate Engineering Sdn Bhd emerged as the largest shareholder of Tatt Giap after increasing its stake to 29.74% from 12.95%. This was done through a conversion of 88.4 million irredeemable convertible preference shares (ICPS) into 44.2 million new shares on the basis of one for every two ICPS.
Dynaciate first emerged in Tatt Giap on Nov 9 last year after acquiring a 12.95% stake, or 22.1 million shares, at 31 sen apiece via direct business transactions.
Following the acquisition, Tatt Giap saw three new appointments to its board as well as the resignation of its chairman, Datuk Siah Kok Poay. The new appointees are executive directors Woon Kok Kee and Khoo Song Heng as well as Lim Peng Tong, who is an independent and non-executive director. Woon and Khoo are now the largest shareholders of Tatt Giap by virtue of their shareholdings in Dynaciate.
At press time, no disclosure had been made on the parties involved in the off-market trade on Jan 14 but it is worth noting that second largest shareholder, Arich Holdings Inc, owns 13.89% of Tatt Giap.
Spring Gallery Bhd also saw the emergence of a new substantial shareholder, Wan Khalik Wan Muhammad. In a direct deal, Wan Khalik acquired 19.7 million shares, or a 9.92% stake, at 65 sen a share on Jan 11 using his private vehicle, Total Sejati Sdn Bhd. The transaction was at a 17.8% discount to Spring Gallery’s closing price of 79 sen on the same day.
Following the acquisition, Wan Khalik was appointed executive director on Jan 14. On Jan 4, Spring Gallery’s CEO and executive director, Datuk Lim Chaing Cheah, resigned.
According to a filing with Bursa Malaysia, Wan Khalik has vast experience in corporate planning, public administration, IT strategic planning and business development. He is also the vice-president of non-profit organisation, Access Green Association of Malaysia. Between 2013 and last year, he was principal secretary to Sarawak’s chief ministers, the late Tan Sri Adenan Satem and his successor, Datuk Patinggi Abang Abdul Rahman Zohari Abang Openg.
At Sanbumi Holdings Bhd, a total of 15.9 million shares, or a 6.4% stake, were traded off market. Bloomberg data shows the shares were sold in two tranches. On Jan 14, 11.2 million shares were traded in a direct deal at 50 sen apiece while 4.68 million shares were traded on Jan 15 at 35 sen per share.
According to Bursa filings, Tan Sri Datuk Chai Kin Kong ceased to be a substantial shareholder of Sanbumi following the disposal of 11.2 million shares in a direct business transaction on Jan 14. Datuk Tan Kean Tet acquired the stake in his personal capacity as well as through his private vehicle, Legacy 888 Sdn Bhd, to raise his shareholding to 20.1%. The off-market trade was done at a 28.2% premium to Sanbumi’s closing price on Jan 14. As at press time, no disclosure had been made on the 4.68 million shares traded on Jan 15.
Substantial stakes were also transacted off market at Asia Media Group Bhd (5.01%) and Green Packet Bhd (4.98%).
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