KUALA LUMPUR (March 17): Businessman Datuk Keh Chuan Seng has ceased to be a substantial shareholder in Ge-Shen Corp Bhd (KL:GESHEN) after selling a 2.41% stake.

Keh sold the stake, comprising 10 million shares, through Frazel Group Sdn Bhd in a direct business transaction on Tuesday, according to a bourse filing.

The filing did not disclose the price, but Bloomberg data showed the shares changed hands in a single block at RM1.52 each, totalling RM15.2 million. The transaction was at a 1.3% discount to the counter’s closing price of RM1.54.

Keh has been offloading his shares in the plastic injection moulding and metal stamping company since Jan 8, when his stake stood at 17.3%. After the latest disposal, his indirect shareholding fell to 4.3%, below the 5% threshold required to be deemed as a substantial shareholder.

The Chiau brothers, Haw Loon and Haw Yew, through Enrich Signature Sdn Bhd, now hold 7.47% and are the largest shareholders in Ge-Shen, followed by executive director Lee Hai Peng with 6.01%.

The 55-year-old businessman stepped down as Ge-Shen's executive chairman a year ago amid heavy selling pressures affecting the company and two other listed companies linked to him — Tex Cycle Technology (M) Bhd (KL:TEXCYCL) and K Seng Seng Corp Bhd (KL:KSSC).

Ge-Shen had cited personal reasons for his resignation and assured investors that it would not affect operations or strategic plans.

In February, Ge-Shen’s extraordinary general meeting approved increasing its stake in electronic manufacturing services company Local Assembly Sdn Bhd to 80% from 40% for RM52 million.

Shareholders also approved a private placement of 30.16 million new shares to raise RM43.74 million, primarily to fund the stake increase.