This article first appeared in Capital, The Edge Malaysia Weekly, on November 2 - 8, 2015.

SOME 584.3 million shares valued at RM621 million were traded off market in the week of Oct 21 to 27 in blocks of at least 450,000.

Caring Pharmacy Group Bhd (fundamental: NA; valuation: NA) saw among the more notable transactions when some 27.8 million of its shares or a 12.76% stake changed hands off market on Oct 26.

The shares were transacted in two direct deals at RM1.80 apiece, valuing the block at a total of RM50 million. Last Monday, the stock closed at RM2.05, indicating a 12% discount on the sale. At press time, it was not known who the transacting parties were.

On Oct 26, 140 million shares or a 9.87% stake in oil palm player Rimbunan Sawit Bhd moved off market. Priced at 50 sen apiece — which was at a 5.7% discount to market price — the direct transactions valued the stake at a total of RM70 million.

According to filings with Bursa Malaysia, Jaya Tiasa Holdings Bhd’s wholly-owned subsidiary Multi Greenview Sdn Bhd entered Rimbunan (fundamental: 0.20; valuation: 0.90) with the 9.87% stake purchase.

The shares were bought from Pemandangan Jauh Plantation Sdn Bhd (100 million) and Tiong Toh Siong Holdings Sdn Bhd (40 million). Jaya Tiasa (fundamental: 0.30; valuation: 1.40), Rimbunan, PJP and TTS have a common major shareholder and director in Tan Sri Sir Tiong Hiew King.

Elsewhere, APFT Bhd saw 20.4 million shares, representing a 4.69% stake, traded off market on Oct 22, 26 and 27 in a series of block and direct deals at 20.5 sen to 24.5 sen apiece. The stake was valued at RM4.2 million.

The stock traded at 24 sen to 25 sen on those days, which means the off-market transactions were done near market prices and at an 18% discount at the highest price.

APFT (fundamental: 0.20; valuation: 0) owns and operates a flight education and training academy.

It is not known who traded the APFT shares off market but on Oct 21, Datuk Seri Muhammad Shafiq Baljit Abdullah ceased to be a substantial shareholder when he sold 35.45 million shares or an 8.16% stake on the open market.

Over at Bioalpha Holdings Bhd (fundamental: NA; valuation: NA), some 18.83 million shares equivalent to a 4.06% stake moved off market from Oct 21 to 23. At 29 sen apiece, the shares were transacted near market price in a series of direct deals. This valued the block at a total of RM5.46 million.

Filings with Bursa show that Bioalpha CEO and managing director William Hon Tian Kok sold a total of 20 million shares at 29 sen apiece over the week. Hon has been paring his stake in the health supplement manufacturer since early October, when he held a 26.37% stake. He now holds a 19.74% direct stake.

Over the week, KNM Group Bhd (fundamental: 0.85; valuation: 1.70) saw 67.2 million shares or a 3.46% stake transacted off market in a series of block trades and a direct deal. The shares were exchanged near market prices of between 52.5 sen and 55.4 sen apiece, valuing the stake at a total of RM37.15 million.

Filings show that KNM founder Lee Swee Eng had, via Aveda Assets Capital Inc, transferred 64.25 million shares to UBS AG London on Oct 21. The transfer fulfils a financing transaction in which UBS provides Aveda with financing against the KNM shares.

UBS simultaneously sold a put option and purchased a call option on the shares, giving Aveda the right of return back for the shares from UBS upon repayment of the financing, which gives Aveda its deemed interest in the transferred shares.

Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Visit www.theedgemarkets.com for more details on a company’s financial dashboard.

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