KUALA LUMPUR (July 28): Green Ocean Corp Bhd, whose share price soared to a seven-year high today, notified today that its second-largest shareholder Khoo Chee Siang has ceased to be a substantial shareholder after disposing of all his shares in the company.

According to the company's filing with Bursa Malaysia, Khoo sold some 28.36 million shares or a 9.79% stake in Green Ocean in the open market yesterday.

The disposal of shares was done in two blocks: One block of 28 million shares was sold at 23.5 sen per share, while the remaining 362,300 shares were sold at 23 sen per share.

The total value of the two transactions was RM6.66 million.

According to Green Ocean's 2019 annual report, Khoo has been an independent non-executive director of the company since September 2017. He is also the chairman of the company's audit committee and a member of its nomination and remuneration committee.

Khoo also sits on the boards of various public listed companies in Malaysia, such as Chin Hin Group Property Bhd and SCH Group Bhd.

Meanwhile, Green Ocean today also announced changes in its board of directors. Its independent and non-executive director Fong Shin Ni and non-independent and non-executive director Shelly Chiau Yee Wern have both resigned due to "other personal commitments".

Following the resignations, the group has appointed Roy Winston George as its new independent and non-executive director. George, 55, is a chartered accountant and has experience in the financial service and hospital sectors.

The group has also appointed its largest shareholder Mak Siew Wei as a director. Mak, 45, is currently sitting on the board of AT Systematization Bhd as an executive director.

Mak emerged as a substantial shareholder of Green Ocean last Thursday, when he bought 49.45 million shares or a 17.07 stake in the company.

In a separate announcement today, Green Ocean said it plans to raise RM5.36 million via a private placement to repay bank borrowings and to use for general working capital.

The company said it intends to issue up to 28.97 million shares, equivalent to 10% of its outstanding share capital, and has fixed the issue price at 18.5 sen per placement share.

Based on the initial issue price, the placement shares could raise up to RM5.36 million. Of this, RM3 million has been earmarked for repaying bank borrowings and RM2.16 million for general working capital.

As at March 31, 2020, Green Ocean's total borrowings stood at RM15.85 million. As such, the RM3 million repayment of borrowings should result in annual gross interest savings of RM120,000.

The group expects the private placement to be completed within two months.

Green Ocean's share price closed three sen or 12.77% higher at 26.5 sen, a level it has not seen since May 31, 2013.

The counter was heavily traded, with some 150.55 million shares changing hands.

Green Ocean's share price has been trending upwards since last Wednesday when it stood at 12 sen. At the current price, Green Ocean's market capitalisation is RM76.77 million.