KUALA LUMPUR (Feb 19): A sizeable block of shares in Ge-Shen Corp Bhd (KL:GESHEN), equivalent to a 4.15% stake, was traded off the public market on Thursday at a discount, a week before the company's extraordinary general meeting (EGM) to vote on increasing its shareholding in an electronic manufacturing services unit and a cash call.

The 16.797 million shares in the precision engineering company were traded at RM1.43 apiece, or a total of RM24.02 million, according to Bloomberg's off-market data.

Against the counter’s closing price of RM1.62, the shares were transacted at a discount of 11.73%.

No shareholding disclosure was issued via the bourse on Thursday.

Ge-Shen’s largest shareholders include Datuk Keh Chuan Seng via Frazel Group Sdn Bhd with 13.95%, the Chiau brothers (Chiau Haw Loon and Chiau Haw Yew) via Enrich Signature Sdn Bhd with 9.56%, and executive director Lee Hai Peng with 6.47%.

At RM1.62 per share, Ge-Shen is valued at RM656.01 million.

In December last year, Ge-Shen called off a deal to sell 4.61 acres of land for RM35 million in cash to precision plastic components and parts maker Plastico Sdn Bhd. It fell through after Plastico failed to secure financing to complete the deal.

That came fresh off the back of the company’s plan to raise fresh capital to part-finance an increased stake in 40%-owned electronic manufacturing services firm Local Assembly Sdn Bhd, by another 40% to 80% for RM52 million.

A first placement of up to 41.4 million new shares is ongoing, and a second placement of up to 30.16 million new shares is pending shareholder approval.

Shareholders are to vote on the proposal for Ge-Shen to increase its stake in Local Assembly, as well as undertake the second placement at an EGM scheduled on Feb 26.

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