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KUALA LUMPUR (March 20): Censof Holdings Bhd has once again been forced to sell shares it owns in Dagang NeXchange Bhd (DNeX), due to another round of margin call.

In a stock exchange filing today, Censof said it disposed of 43.49 million shares representing a 2.48% stake in DNeX for RM2.60 million or 6 sen apiece, on March 19.

“The original cost of investment for the 43.49 million DNeX shares was RM8.86 million. As such, the share disposal is expected to book total loss of RM12.19 million at group level and a loss of RM6.25 million at the company level,” it said.

"The shares disposal raised total proceeds of RM2.61 million, which will be utilised to reduce the share margin loan by rectifying the shortfall position of margin call by MIDF," it added.

Censor has been selling its shares in DNeX to meet its margin loan facility requirement since last Wednesday. In the past seven trading days, Censof has sold a total of 158 million DNeX shares. As of today, Censof still owns 127.05 million shares or 7.22% in DNeX.

DNeX shares, which have slumped as oil prices crash recently, closed 2 sen higher at 10 sen today. From 22 sen apiece on March 22, the stock has declined over 50% since. It now has a market capitalization of RM175.81 million.

As for Censof, which has been reporting lacklustre financials in the past six quarters, its shares also closed 2 sen higher at 6 sen apiece today, which gives it a market capitalization of RM30.11 million.

http://www.theedgemarkets.com/article/margin-call-again-forces-censof-trim-dnex-stake
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