BORNEO OIL BHD BORNOIL (7036)
PETALING JAYA: Prices in the shares and warrants of Borneo Oil Bhd rose amid a subdued market as its new substantial shareholder, who is related to conglomerate Hap Seng Consolidated Bhd, increases his stake to 23% from 19.12%.
Borneo Oil’s share added 2.5 sen or 3.76% to 69 sen, with 20.6 million shares changing hands. Its warrants climbed two sen or 3.92% to 53 sen.
The price uptrend followed the announcement of Tan Sri Lau Cho Kun’s acquisition of 53.1 million shares, or a 19.12% stake, in the company which owns the Sugar Bun fast-food chain.
Last Friday, companies related to the low-profile tycoon from Sabah, among which is Hap Seng Insurance Services Sdn Bhd, bought 51.25 million shares or a 18.47% stake in Borneo Oil. Due to Gek Poh (Holdings) Sdn Bhd’s interest in Hap Seng Insurance, it also has an indirect interest in Borneo Oil.
Subsequently, Hap Seng Insurance acquired another 11 million shares, or 3.97%, at 72 sen apiece “through a direct business transaction”, the company announced to Bursa Malaysia yesterday.
That brings Lau’s stake in Borneo Oil to 23.08%, or 64.06 million shares.
Borneo Oil’s other major shareholders include Victoria Capital Sdn Bhd with 11.6% and Datuk Freddy Lim with 8.85%.
Lim is also the chief executive officer and single largest shareholder of Sabah-based plantation firm Kretam Holdings Bhd, with a 48.4% stake, while Victoria Capital’s shareholders comprise Dicka Liau@Dick Liaw and Rozita Norrizam Ajmain.
Interestingly, Lim and Hap Seng Credit Sdn Bhd are chargees of Victoria Capital.
A search on the Registrar of Companies showed that Lim had charged RM15.78mil to Victoria Capital last June, while Hap Seng Credit had charged RM16mil this February.
Previously, Borneo Oil executive director Raymond Teo Kiew Leong had told StarBiz in an interview that its wholly-owned subsidiary, Borneo Oil & Gas Corp Sdn Bhd, had installed and commissioned the first phase of a mining plant and equipment in June.
Teo said more than 43 kg of gold had been recovered out of over 187,000 tonnes of alluvial processed since it began mining operations in an area that spans over 162ha in Merapoh, Pahang.
In May, the company had proposed a private placement, which involves an issuance of up to 20% of its issued and paid-up capital, to raise up to RM35.5mil.
The funds raised were for the purchase of a new mining plant and equipment, the funding of gold-exploration activities and the setting up of a new fast-food central-processing plant in Kuching.
Its other existing businesses are fast-food operations and franchising, property as well as oil and gas.
Borneo Oil’s total liabilities for the financial year ended Jan 31, 2014 (FY14) stood at RM19.16mil, while its cash and cash equivalents amounted to RM6.16mil.
It raked in an income of RM41.82mil and earnings of RM3.11mil for FY14.
The Star, October 9, 2014 MYT 12:00:00 AM
