We have detected some unexpected shareholding development in CAELY.
(Previously, we detected almost the same boardroom tussle leading to price increase in NWP - refer to here.)
On Nov 17 2020, The Edge reported that Dato’ Chuah and his wife Datin Fong disposed their shares at RM 0.57 to Dato’ Wira Ng Chun Hau. That disposal effectively trimmed their combined shareholding to 16.27% from 27.58%.
However, the latest record based on their announcement to Bursa states that the couple now holds 26.16%. Probably, the couple felt regret for disposing their shares and would like to make comeback.
One thing for sure, NIHSIN is no longer in the picture after exiting on the 4th August 2020 by disposing more than 7 million shares.
As of 20th December 2020, three major groups hold both direct and indirect interests as follows:
- Group 1 - Dato’ Chuah and Datin Fong: 26.16%
- Group 2 - Dato’ Wira Ng: 27.83%
- Group 3 - Dato’ Sri Goh: 28.05%
Realising that he might be under threat, Dato’ Wira Ng might want to increase his shareholding and take control of both the Board and Management. It would be a slap in the face for him to be given a non executive role as a “Non-Independent Non-Executive Chairman.” The couple remains as Managing Director and Executive Director.
It is an open secret that Dato’ Wira Ng might want to inject his Public Gold Group into CAELY and push CAELY’s price beyond RM 1. This is especially true since Dato’ Wira Ng’s other public listed vehicle i.e., AURORA (03037) is only a LEAP market counter that is non-active.
One of the options is for Dato’ Wira Ng to increase his stake via open market. Potentially, this is a better option for CAELY's long term value if he can inject his GOLD business into CAELY.
We believe that if the price reaches RM 0.80, Dato’ Chuah and Datin Fong might seriously consider exiting CAELY fully.
TP1: RM 0.66
TP2: RM 0.86
ALL THE BEST TO DATO' CHUAH/DATIN FONG AND DATO' WIRA NG!
Disclaimer : The above opinion is never intended to be a BUY CALL whatsoever. Wealthstudio is sharing our observations. Wealthstudio analysis is based on detailed research and analysis based on facts and figures available in the market (thank you Google), plus technical analysis from Tradingview's charting. Please make your own informed decision before buying this share or whatever share for that matter.