KUALA LUMPUR (July 14): HB Global Ltd, a China-based frozen food maker, said Keh Chuan Seng has emerged as its largest shareholder in the company, after acquiring 150 million shares yesterday.

The acquired shares represent a stake of 32.05% — less than 1% from the 33% level that would trigger a mandatory general offer (MGO).

Based on Bloomberg data, the block trade was transacted at two sen per share, a discount of 84% to its closing price of 13 sen yesterday. The stake is thus valued at RM3 million.

Keh’s background is not known at the moment.

In October 2019, HB Global was uplifted from its classification as a PN17 company, as it no longer triggered any prescribed criteria under the PN17 listing criteria.

However, a year prior to that, Bursa Securities had publicly reprimanded HB Global for breaching listing rules.

In particular, the company was reprimanded for failing to ensure its report for its fourth quarter  ended Dec 31, 2016 took into account adjustments announced on April 28, 2017.

At market closing today, the penny stock settled half sen or 3.8% down at 12.5 sen, for a market capitalisation of RM59 million.