Bursa weighs in on Sanichi’s rare update on major shareholder cessation; latter's share price nears record low

TheEdge Fri, Sep 10, 2021 01:43pm - 2 years View Original


KUALA LUMPUR (Sept 10): Bursa Malaysia, in response to Sanichi Technology Bhd's rare announcement on the latter's major shareholder cessation after more than three months, said the bourse regulator and operator monitors the market closely and will take the necessary enforcement actions if there is any breach of listing requirements. 

"We will also make the necessary referrals to other relevant authorities, should we come across any potential breaches of other regulations or Acts, other than the listing requirements,” Bursa said in an emailed statement in response to queries from theedgemarkets.com.

theedgemarkets.com had earlier asked Bursa whether it is acceptable or unacceptable for a listed company to take more than three months to announce a major shareholder's cessation.

In a rare move, plastic injection mould manufacturer Sanichi announced last Friday (Sept 3) that Cita Realiti Sdn Bhd had ceased to be a substantial shareholder in Sanichi after more than three months since the cessation took place in May 2021.

Sanichi said in a Bursa filing on Sept 3 that Cita Realiti ceased to be a substantial shareholder in Sanichi on May 20, 2021, after Cita Realiti disposed of 26.97 million Sanichi shares on the open market.

It should be noted that another unusual occurrence is that Sanichi had made the May 20, 2021, major shareholder cessation announcement last Friday (Sept 3) after an almost similar announcement on June 1, 2021 when the company said Cita Realiti had ceased to be a substantial shareholder in Sanichi on May 20, 2021 after disposing of 3.46 million Sanichi shares on the open market.

In a separate Bursa filing on June 1, 2021, Sanichi said Cita Realiti had reemerged as a substantial shareholder with a 12.112% stake comprising 170 million new Sanichi shares subscribed by Cita Realiti pursuant to Sanichi’s rights issue which was initially announced on Feb 3, 2021.

On Feb 3, 2021, Sanichi announced several corporate proposals including the company’s planned diversification into glove manufacturing and its intention to consolidate every 10 shares into one unit.

Sanichi said its renounceable right issue involved up to 1.42 billion new shares and 712.22 million free detachable warrants on the basis of six rights shares together with three warrants for one consolidated share held.

Following the share consolidation, Sanichi has 388.72 million issued shares.

The 26.97 million shares sold on May 20, 2021 by Cita Reality represented a 6.94% stake in Sanichi based on the 388.72 million issued shares following the completion of Sanichi's share consolidation in April 2021, according to Sanichi.

Cita Realiti’s stake in Sanichi stood at 9.33% comprising 36.26 million shares on May 12, 2021, according to Sanichi’s Bursa filing on May 17, 2021.

At Bursa’s 12:30pm break today, Sanichi’s share price settled unchanged at 3.5 sen for a market value of about RM13.61 million. Sanichi’s record low closing share price at three sen was registered on Sept 2, 2021. 

Sanichi’s share price had fallen to current levels from its closing price of 35 sen on May 17, 2021.

On May 25, 2021, Bursa had issued an unusual market activity (UMA) query on the sharp fall in Sanichi’s share price.

Sanichi responded in a Bursa filing on the same day (May 25, 2021) that the company was unaware of any rumour or report that might have led to the UMA.

At the time of writing today (Sept 10), Sanichi had not issued a statement to Bursa to specify reasons behind Sanichi’s rare announcement on Cita Realiti’s cessation as major shareholder after more than three months last Friday (Sept 3) following an almost similar announcement on June 1, 2021.

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