Off-Market Trades

FOR the week ended April 29, 704.33 million shares worth RM571.21 million changed hands off market, in blocks of at least 475,000 shares.

At PDZ Holdings Bhd, a total of 290.342 million shares or a 33.4% stake changed hands during the week, as the management and major shareholders pared down their stakes.

The bulk of the shares were sold in a direct trade on April 24, as Tan Sri Tan Hua Choon sold off 166.33 million shares or 19.13% in the group. Pelaburan Mara Bhd (PMB) accumulated 233.248 million shares on the same day, including Tan’s stake, bringing its equity interest to 26.83%, making it the single largest shareholder.

PDZ’s executive director, Ong Khoon Seng, sold 80,000 shares off market at 16.5 sen per share on April 21, before PMB emerged. Subsequently, he disposed of an additional 100,000 shares at 15.5 sen apiece on April 25.

Chairman Thor Poh Seng and non-executive director Wong Hok Yim also resigned from the shipping firm, as of April 28. PDZ made a net loss of RM2.58 million for the six months ended Dec 31, 2013.

Another notable transaction was at ACE market-listed Oriented Media Bhd (OMedia), which saw 50 million shares or a 28.11% stake traded off market in a single block on April 24. The transaction took place at 15 sen a piece, for a total value of RM7.5 million.

No announcement has been made to Bursa Malaysia on the trade and based on company records, no single shareholder has more than a 15% stake.

Loss-making OMedia is in the midst of undertaking a 20% private placement to raise RM3.56 million. The group also saw the departure of its chief marketing officer and executive director, Nobel Pang Paul Gen, who sold his entire 10.75% stake in the group.

At Halex Holdings Bhd, 13.66 million shares or a 13.66% stake changed hands in a single trade, on April 25. The shares were disposed of by director Low Ngak Tiow for approximately RM14.6 million.

It is not apparent who acquired the shares, but the transaction coincided with the resignation of executive director Wong Ah Chuan to pursue his personal interests.

Halex deals in agro-chemical and biotechnology and has been consistently profitable in the past few years.

Meanwhile, Lion Diversified Holdings Bhd saw 2.22% of its shares move off market. A single transaction of 30 million shares on April 29, accounted for most of the company’s off-market activity.

While it was unclear at press time, who the seller was, it is likely to be the group’s founder and major shareholder, Tan Sri Willian Cheng. On April 25, he announced to Bursa, his intention of trading Lion Diversified shares during the closed period.

The group continues to be loss-making, with a net loss of RM75.8 million in the six months ended Dec 31, 2013. However, this is considerably lower than the net loss of RM155.03 million in the same period, the year before.

Excel Force MSC Bhd saw 4.77 million shares or a 2.31% stake traded off market on April 24, in several blocks. The trades took place at 75.5 sen per share, close to the group’s all-time-high share price.

The transaction coincides with the disposal of 9.78 million shares by executive director Sharon Sun, on the open market, on the same day. She is the wife of chairman and managing director, Wang Kuen-Chung.

The group, which develops trading platforms, posted a net profit of RM7 million for the year ended Dec 31, 2013.


This story first appeared in The Edge weekly edition of May 05-11, 2014.

Written by Ben Shane Lim of The Edge Malaysia