Off-Market Trades

SOME 459.89 million shares worth RM838.5 million changed hands, in blocks of at least 450,000 shares, from July 2 to 8.

Gabungan AQRS Bhd saw 34.6 million shares or a 9.73% stake traded in off-market deals, on July 2 and 8. The transactions were priced at RM1.19 and RM1.20 per share, similar to the prices on the open market on those days.

On July 2, a block of 15.8 million shares was traded in a direct deal between the group’s major shareholders. Gabungan executive director and founder, Ow Chee Cheoon, acquired the stake from Meriah Nasibi — another substantial shareholder and director.

As a result of the deal, Ow and Meriah’s equity interest in Gabungan, now stands at 9.16% and 1.43% respectively. The company’s shares have been flattish so far this year, in spite of it bidding for construction projects, worth RM1 billion.

In a June 26 press release, Gabungan CEO Ng Chun Kooi said that the group is planning to scale up its construction operations, to have an order book of more than RM2 billion at any one time.

To do this, Gabungan recently proposed a private placement of up to 10% of its issued and paid-up shares, which would generate about RM53.61 million in gross proceeds.

SBC Corp Bhd saw significant off-market trading volume, with 15 million shares — representing 9.58% of its total outstanding shares — transacted on July 2. The transactions were priced at RM2.10 apiece or significantly lower than the stock’s closing price of RM2.18 on the open market that day.

The property developer reported a net profit of RM35.82 million in its financial year 2014 ended March 31, or a 33% increase from RM26.76 million in FY2013.

SBC’s shares have been among the top performers in the property sector this year. They closed at RM2.14 apiece on July 9, for a year-to-date increase of 78%.

On July 7, Magna Prima Bhd saw 15.07 million shares traded at RM1.06 apiece, compared with its closing price of RM1.17 that day. The block of shares, worth RM15.97 million, represented 4.53% of the company’s share base.

The identities of the parties behind the transaction have not been disclosed as at press time.

On July 8, the company said that its subsidiary, Magna Prima Australia Pte Ltd, had fully settled a mezzanine loan amounting to A$15 million to Hickory Group Pte Ltd — an Australian construction outfit.

Another notable off-market deal was seen at Sumatec Resources Bhd, where a large block of 97.76 million shares, representing equity interest of 3.11% in the oil and gas company, was traded in five separate transactions, from July 2 to 8.

The transactions were priced at between 32 and 35 sen apiece, which were at a slight premium to the open market prices in the same period. The counter closed at 31 sen on July 9 (Wednesday).

Sumatec’s shares have seen renewed buying interest, since a June 24 announcement of an upward revision in its oil and gas reserves. According to its CEO, Chris Dalton, a review of Sumatec’s oil and gas field in Rakushechnoye, Kazakhstan, yielded a 14.5% increase in proven oil reserves to 129 million barrels.

Also worth noting are the 13.8 million shares of Inari Amertron Bhd, that were traded on July 3 and 4. The trades, which represented 2.58% of Inari’s share base, totalled RM42.89 million.

The transactions are linked to Inari shareholders, Mai Mang Lee and Macronion Sdn Bhd. On July 3, both parties ceased to be substantial shareholders, after disposing of 5.85 million and four million shares, respectively.

While the transactions were done at between RM3.05 and RM3.13 apiece, Inari’s shares rose 7% over the week, to close at RM3.34 on July 9.


This story first appeared in The Edge weekly edition of July 14-20, 2014.