KUALA LUMPUR: More than a month has passed since Serba Dinamik Holdings Bhd co-founder Datuk Awang Daud Awang Putera emerged as a major shareholder in loss-making Sealink International Bhd.

Minority shareholders are now holding their breath in anticipation of what Awang Daud will do next after buying into the Miri-based offshore support vessel player. This is notably his first appearance as a major shareholder in a listed company after Serba Dinamik, which listed in 2017.

The elephant in the room now is whether Awang Daud will seek majority control of Sealink as he is just several percentage points away from triggering a mandatory general offer (MGO) for the remaining shares.

Awang Daud surfaced as Sealink’s single largest shareholder after acquiring 150 million shares or a 30% stake on Oct 10. The seller was Sealink Holdings Sdn Bhd, the vehicle of the Yong family which had started the business.

The shares were acquired off-market at 36.5 sen apiece or 18.89% below Sealink’s closing price of 45 sen that day, according to Bloomberg data. The transacted price values the stake at RM54.75 million.

Up to last Friday, Awang Daud had not joined the Sealink board despite his stake. It remains unclear whether the sale signals the Yong family’s intention to bid farewell to Sealink via a full exit later or just loosening its grip to bring in a new management in search for a better future for the company.

Bloomberg data shows that collectively, the Yong family still control the largest block of shares in the company as Sealink Holdings retains 21.82% stake or 109.08 million shares. Managing director Yong Kiam Sam and his father Yong Foh Choi hold 13.48% and 9.14% respectively as at Oct 10.

Prior to the sale to Awang Daud, the Yong family controlled 65.29%, according to its 2018 annual report. Sealink Holdings was the largest shareholder with 51.82%.

Kiam Sam took over as managing director in May 2018 following the retirement of his father Foh Choi, who founded the company in 1974 as a vessel charter business to non-oil and gas industries.

Interestingly, Awang Daud’s entry into Sealink could be seen to be in line with Serba Dinamik’s recent moves to strengthen its capabilities. Separately, fellow co-founder cum group chief executive officer Datuk Mohd Abdul Karim Abdullah had also personally invested into Sarawak Consolidated Industries Bhd (SCIB) and Kumpulan Powernet Bhd (KPowernet) this year.

Sealink shares notably began rallying since late May this year to hit a five-year high of 47.5 sen in late September, just two weeks prior to Awang Daud surfacing in Sealink. Before that, it had not breached 30 sen since 2017 and even fell to an all-time low of 10.5 sen on Dec 27, 2018.

It closed at 42 sen last Friday, valuing the company at RM210 million. Since Awang Daud surfaced, it had mostly stayed below 45 sen.

Should Awang Daud up his stake and be compelled to extend an MGO, this would likely bode well for Serba Dinamik in expanding its capabilities across the value chain in the energy sector.

Sealink builds, owns and operates a diverse fleet of offshore marine support vessels, and has been loss-making since its financial year ended Dec 31, 2015, which coincides with the low crude oil price environment back in 2015. Currently, its shipping division has a fleet of 33 vessels. Since 1999, its shipyard in Kuala Baram, Miri has built 68 vessels.

Sealink ventured into chartering vessels to oil and gas players in 1994, three years before it started its shipbuilding division. The company made its debut on Bursa Malaysia on July 29, 2008.

Looking at Abdul Karim’s moves into SCIB and KPowernet, there was gap of three to four months from his initial surfacing to breach the 33% mandatory MGO threshold, which triggered an MGO in both cases.

In SCIB, Abdul Karim emerged as a substantial shareholder after acquiring 19.35 million or 22.53% on May 28. Subsequently, he acquired another 17.45 million shares or 20.32% off-market in Aug 15, to increase his shareholding to 42.85% — triggering an MGO.

As at Sept 30, Abdul Karim holds a total stake of 50.53% or 43.4 million shares in SCIB.

In KPowernet, Abdul Karim first bought 15.26 million shares or 20.04% on June 20. Then on Oct 2, he acquired a further 12.45 million shares or 16.36% interest in the company, bringing his total shareholding to 36.4% or 27.71 million shares — again triggering an MGO.

As at Oct 16, Abdul Karim held a 37.77% stake or 28.76 million shares in KPowernet.

As for Sealink, only time will tell whether Awang Daud will seek majority control of the company in order to shape its destiny after putting in money to gain a 30% stake.