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Insider Moves: Fitters Diversified Bhd, MMAG Holdings Bhd, Borneo Oil Bhd, KPower Bhd, Tenaga Nasional Bhd

Notable filings

During the week of June 20 to 24, notable shareholding changes at companies listed on Bursa Malaysia included those at Fitters Diversified Bhd, which saw Ho Jien Shiung ceasing to be a substantial shareholder of the safety equipment manufacturer.

Bourse filings show that Ho disposed of 20 million shares, or a 3.48% stake, on the open market on June 22, leaving him with a 4.14% stake. He emerged as Fitters’ substantial shareholder in March this year, following the subscription of 46.3 million shares, or 7.62% equity interest, via a private placement.

Fitters announced another cash call in May to raise up to RM148.99 million via a renounceable rights issue with free warrants, for working capital for the group’s palm oil mill operation, to repay borrowings as well as fund its fire services projects.

Over at MMAG Holdings Bhd, Fantastic Pace Sdn Bhd — owned by Peter Yap and Ng Them Seang — divested 183.61 million shares, or 10.78% equity interest, in the integrated supply chain management firm on June 23, ceasing to be a substantial shareholder.

Note that Fantastic Pace emerged as MMAG’s substantial shareholder on June 20, following the issuance of shares at 6.1 sen each pursuant to a debt settlement with MMAG’s wholly-owned subsidiary Line Clear Express & Logistics Sdn Bhd.

Meanwhile, MT 23 Resources Ltd surfaced as Borneo Oil Bhd’s substantial shareholder after it received 752.54 million shares, or a 9.14% stake, following Borneo Oil’s purchase of a 13.76% stake in Sabah-based clinker and cement products manufacturer Makin Teguh Sdn Bhd from MT 23 Resources for RM45 million.

The acquisition sum was satisfied by way of a treasury share transfer and cash from internal funds. Borneo Oil said the deal presents an opportunity for the group to expand into downstream quarrying to further boost its profit.

Borneo Oil posted a net profit of RM48.9 million for the nine-month period ended March 31, 2022, against a net loss of RM7 million in the same period a year ago.
Notable movements

KPower Bhd saw Grand Deal Vision Sdn Bhd cease to be its substantial shareholder after the latter pared its stake to 4.44% from 7.31%, through a direct business transaction. The block of 15.56 million shares, or a 2.87% stake, was sold for RM3.35 million, or 21.5 sen each, on June 20.

This disposal price represents a 40.3% discount to KPower’s closing price of 36 sen that day. Closing at 32 sen last Tuesday, the stock has halved from its recent peak of 62 sen recorded in early April.

Grand Deal Vision is controlled by KPower executive chairman Mustakim Mat Nun and deputy chairman Sarah Azreen Abdul Samat. Mustakim still holds a direct stake of 7.5% in KPower, which is involved in construction-related activities covering engineering, procurement, construction and commissioning as well as specialised engineering services.

The headwinds faced by Tenaga Nasional Bhd, namely rising trade receivables and an unchanged electricity tariff surcharge till year-end, have prompted the Employees Provident Fund to trim its position in the national utility firm. As at June 22, the pension fund’s stake in Tenaga stood at 15.89%, compared with 16.04% a month ago and 16.25% at end-December 2021.

Tenaga has taken a beating in recent months, with its share price touching a seven-year low of RM7.90 last week, representing a 15.3% decline since the start of the year.

The group’s receivables more than doubled to a record high of RM14.07 billion in the first quarter of 2022 from RM6.29 billion a year ago. It is estimated that more than 60% was additional fuel costs not accounted for under the current electricity base tariffs, and imbalance cost pass-through (ICPT) mechanism surcharge for February to June 2022.

The ICPT rebate of two sen per kWh for domestic consumers and 3.7 sen per kWh surcharge for non-domestic consumers will remain unchanged throughout the second half of the year.


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