Notable filings

Between June 27 and July 1, notable filings included that at Bioalpha Holdings Bhd, which saw executive director Ho Tze Hiung and managing director and CEO William Hon Tian Kok disposing of their stakes amounting to eight million and 6.2 million shares respectively on the open market.

Filings with Bursa Malaysia show that after the disposal, Ho ceased to be a shareholder of the company. As for Hon, the disposal left him with 143.79 million shares — equivalent to a 10.43% stake.

It is worth noting that the shares disposed of by Ho were the result of an eight million share option exercise at 14 sen apiece on June 13. Similarly, Hon acquired 150 million shares in an option exercise at 14 sen each on the same date.

The closing price of the shares was 14 sen on June 13.

At Borneo Oil Bhd, substantial shareholder MT 23 Resources Ltd disposed of 230 million shares via an off-market transaction during the week in review. Post-disposal, MT 23 Resources is left with 522.54 million shares, or a 6.34% stake.

MT 23 Resources emerged as a substantial shareholder in Borneo Oil on June 24 after receiving 752.53 million shares, or a 9.14% stake, filings show.

In May, Borneo Oil acquired a 13.76% stake in Sabah-based clinker and cement products manufacturer Makin Teguh Sdn Bhd (MTSB) for RM45 million. MT 23 Resources is the legal and beneficial owner of a 28.78% stake in MTSB. The acquisition sum was satisfied by way of a treasury share transfer and cash from internal funds.

Hubline Bhd’s substantial shareholder and executive chairman Datuk Richard Wee Liang Huat disposed of 16.1 million shares in the company, via BNDM Incorporated Holdings Sdn Bhd, through an off-market transaction.

The other party in the transaction has not been disclosed at this juncture. Filings with Bursa show that post-disposal, BNDM Incorporated is left with 1.06 billion shares, or a 24.73% stake.

Hubline, which is in the business of sea freight, returned to the black in its second quarter ended March 31, 2022, with a net profit of RM2.48 million on revenue of RM46.78 million. A year ago, it recorded a net loss of RM508,000 on revenue of RM35.51 million.

Meanwhile, Kretam Holdings Bhd CEO Datuk Freddy Lim Nyuk Sang sold 11.5 million share via an off-market transaction during the week in review. Post-disposal, Lim still holds 1.5 billion shares — equivalent to a 46.94% direct stake and a 19.9% indirect stake.

Notable movements

Digi.Com Bhd’s share price rose 17% to RM3.64 from RM3.21 during the week in review. The share price gain followed the announcement by the Malaysian Communications and Multimedia Commission (MCMC) that it has no objection to the proposed merger between Digi and Axiata Group Bhd. The merger application for Celcom and Digi was submitted to MCMC in July 2021.

Axiata’s share price increased marginally by 3.2%, from RM2.74 on June 27 to RM2.83 on July 1.

Filings show that the Employees Provident Fund (EPF) had disposed of 2.22 million shares in Axiata and a total of 988,800 shares in Digi during the week in review.

Post-disposal, the EPF is left with a 16.87% stake in Axiata and 14.91% in Digi.

Meanwhile, Reach Energy Bhd’s share price fell 33%, from nine sen on June 24 to six sen on July 1. Filings with Bursa reveal that its substantial shareholder MTD Capital Bhd had disposed of 114 million shares in the company, thereby ceasing to be a substantial shareholder.

On June 30, Reach announced a debt settlement proposal where it will issue 1.03 billion new shares at 20 sen apiece to offset debt owing to Super Racer Ltd (SRL) amounting to US$49.56 million (about RM219 million).

The proposed exercise will see SRL becoming the largest shareholder of the group, with a 48.5% stake. SRL intends to seek an exemption from taking a mandatory takeover offer of Reach’s remaining shares and outstanding warrants.