Insider Moves: EA Holdings Bhd, TAFI Industries Bhd, Malaysian Genomics Resource Centre Bhd, ATA IMS Bhd

Insider Moves: EA Holdings Bhd, TAFI Industries Bhd, Malaysian Genomics Resource Centre Bhd, ATA IMS Bhd

Notable filings

For the week of Nov 29 to Dec 3, notable changes in shareholding at companies listed on Bursa Malaysia included those at EA Holdings Bhd (EAH), which saw property developer VinVest Capital Holdings Bhd, formerly Vivocom Intl Holdings Bhd, emerge as a substantial shareholder of the ACE Market-listed IT company.

According to bourse filings, VinVest Capital subscribed for 1.1 billion shares, or a 17.82% stake, in EAH at 2.11 sen each for a total of RM23.21 million on Nov 30. The deal, satisfied via the issuance of 62.65 million new VinVest shares at 37.05 sen per share, will result in EAH holding a minority stake of 6.5% in the enlarged share capital of VinVest.

The share issuance is part of a corporate exercise undertaken by EAH, which includes a capital reduction to eliminate up to RM99.5 million of its accumulated losses via the cancellation of its issued share capital.

In an Oct 18 circular to shareholders, EAH management said the share issuance was in line with its strategy to expand the group’s revenue and earnings base, while the capital reduction served as an alternative for EAH to start afresh in its financial position and strengthen its capital base for future undertakings.

Over at Vsolar Group Bhd, the renewable energy group saw its substantial shareholder AE Multi Holdings Bhd, which manufactures printed circuit boards and related products, acquire an additional 340.83 million of its shares on the open market. The transacted price was not disclosed, but the counter was trading at 2 sen per share on the open market during the week in review.

Post-acquisitions, AE Multi’s stake in Vsolar increased to 671.33 million shares, equivalent to 14.39% equity interest. The company had emerged as a substantial shareholder of Vsolar on Nov 26, after acquiring 150.5 million shares on the open market and increasing its holding to 330.5 million shares, or a 7.24% stake.

On Dec 2, office furniture manufacturer TAFI Industries Bhd announced the emergence of a new substantial shareholder in Koperasi Permodalan Felda Malaysia 2 Bhd (KPF2), after the latter acquired a total of 12.65 million shares, or a 10.21% stake, through direct business transactions on Nov 29 and Dec 2.

KPF2 had acquired the shares from controlling shareholder Armani Synergy Sdn Bhd, which remains the controlling shareholder of TAFI with a stake of 52.34%, or 64.86 million shares.

KPF2 investment committee chairman Abdul Malek Jalil said in a statement that the cooperative had invested in TAFI to gain exposure to the furniture and property development industries to enhance its investment returns for its members.

TAFI’s stock price had gained 225.4% year to date (YTD) to close at RM2.05 last Wednesday, giving the company a market capitalisation of RM254.07 million.
Notable movements

Malaysian Genomics Resource Centre Bhd’s (MGRC) share price fell 7% to RM2.38 on Dec 2 from RM2.55 on Nov 29. The stock reached a high of RM2.57 on Nov 30 but gradually fell to RM1.17 on Dec 7, giving the company a market capitalisation of RM145.33 million.

On Dec 6, MGRC was slapped with an unusual market activity (UMA) query by Bursa Malaysia over the sharp fall in the price of its shares. Its share price hit limit down on Dec 6 and 7, resulting in the shares being suspended from trading for a day on Dec 8. However, MGRC said it was unaware of any corporate developments that may account for the UMA.

On Dec 1, Pixelvest Sdn Bhd purchased 250,000 shares in MRGC on the open market, raising its stake to 7.88%.

Bourse filings show ATA IMS Bhd chief operating officer and executive director Datuk Balachandran Govindasamy has been mopping up the company’s shares since June. He acquired 1.05 million shares during the week in review, bringing his direct and indirect equity interest to 7.96%, or 95.77 million shares.

The electronics manufacturing service provider’s share price has fallen sharply since Nov 12, from RM2.57, after it announced that it had recorded a net loss of RM11.17 million for 2QFY2022 ended Sept 30, versus a net profit of RM52.29 million a year ago, on lower revenue due to the Full Movement Control Order implemented from June to September, as well as manpower shortages.

Its woes worsened after home appliance maker Dyson Ltd cut ties with the company on Nov 24 over labour practices. In fact, the trading of ATA’s shares was suspended on Nov 29 after its share price hit limit down for two consecutive days following news that its contract with Dyson had been terminated.

ATA’s share price had declined 81% from RM2.57 on Nov 12 to 49.5 sen last Wednesday, which translates into a market capitalisation of RM589.23 million. YTD, the stock is down 78.48%.

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