KUALA LUMPUR: Kumpulan Powernet Bhd’s share price, which has more than doubled to 78.5 sen in slightly more than a month, has announced that certain substantial shareholders and a director of the company are finalising the terms of a share sale agreement to dispose of shares in the wrap-knitted fabric manufacturer.

Kumpulan Powernet’s announcement came after the query by Bursa Malaysia on the unusual market activity.

A random check on its latest annual report showed that the company’s single largest shareholder is SSF Home Builder holding a 10.99% stake, followed by Lee Chong Hoon Capital Sdn Bhd, in which former director Datuk Lee Chong Hoon is deemed interest, 8.96% stake.

Among the board members who also own shares in Kumpulan Powernet include Fong Wai @ Foong Kai Ming holding 3.14% equity interest

Other than the negotiation on share sales, the company said it is unaware of any other possible explanation to account for its unusual trading activity.

There are also no rumours, reports nor corporate development relating to the group’s business and affairs that have not been previously announced, including those in the stage of negotiation or discussion, that may account for the trading activity, said the company in the filing.

Kumpulan Powernet’s share price staged a strong rally early last month, leaping from 33.5 sen on May 9 to an intraday high of 84 sen yesterday. The stock closed at 78.5 sen with a market capitalisation of RM59.78 million.