Malaysia Dealbook: EPF substantial shareholder in in Titijaya; Ewein’s JV; Hong Leong Bank plans rights issue; TMS CEO disposes 7.6% stake

One of the residential developments by Titijaya, called Subang Parkhomes.

Among the key trades and deals in the past week are in property developers Titijaya Land and Ewein, while Hong Leong Bank looks to rights issues for fundraising and The Media Shoppe CEO ceases to be a substantial shareholder.

EPF now substantial shareholder in Titijaya

The Employees Provident Fund (EPF) has emerged as a substantial shareholder in Titijaya Land Bhd with a 5.35 per cent stake.

The retirement fund had bought a total of 18.27 million shares or a 5.17 per cent stake in the property developer on February 4 and hence, emerged as a substantial shareholder.

In a stock exchange filing, Titijaya said EPF raised its stake to 5.372 per cent on February 5 after acquiring 706,300 shares.

However, between July 28 and August 3, the fund had disposed of a total of 767,000 shares, which brought its total shareholdings in Titijaya Land to 5.35 per cent or 18.9 million shares currently.

The price of these transactions were not disclosed.

Ewein-Consortium Zenith in JV to develop Wellness City

Ewein Zenith Sdn Bhd, a joint venture (JV) between Ewein Land Sdn Bhd and Consortium Zenith BUCG Sdn Bhd, will partner Consortium Zenith to develop the Wellness City of Dreams at Bandar Tanjong Pinang in Penang.

Consortium Zenith owns 40 per cent of Ewein Zenith shares, while Ewein Land Sdn Bhd, a wholly-owned unit of Ewein Bhd, holds the remaining 60 per cent. Ewein Bhd, listed on Bursa Malaysia, is a precision sheet metal manufacturer.

The development, with a gross development value of MYR15 billion, will contribute MYR2.5 billion to Penang’s gross national income, and by extension the rest of the country.

Wellness City of Dreams spans over 50 acres of land. It is a resort-styled development comprising a wellness mall for healthcare, recuperation, retirement homes, and alternative medical care.

Consortium Zenith chairman Zarul Ahmad Mohd Zulkifli said the proposed development will create an estimated 10,000 jobs.

“Our first priority is to start work on the three major highways in the first quarter of next year, which we believe will alleviate traffic congestion and promote increased trade and travel between Penang and the mainland, especially the Northern Corridor states,” he told reporters after the signing of a memorandum of understanding between Ewein Zenith and Consortium Zenith yesterday.

Hong Leong Bank plans rights issue to raise $757m

Hong Leong Bank Bhd is planning to raise up to MYR3 billion ringgit ($757 million) in rights issue this year to strengthen its capital.

The bank will undertake the renounceable rights issue to the shareholders of HLB as at the close of business on an entitlement date to be determined later.

“The proposed rights issue will also facilitate the build-up of an adequate level of capital buffer in preparation for the forthcoming regulatory capital requirements,” the bank said in a filing with Bursa Malaysia.

Reuters earlier reported, quoting two sources with direct knowledge of the matter that the bank is the last among its peers to fortify its capital to meet more stringent central bank requirements under the global Basel III framework.

“Analysts had earlier said Hong Leong Bank’s core capital, measured by its common equity tier 1 ratio, was one of the lowest among local banks at 8.1 percent and that the bank was seeking to increase that level to at least 10 percent,” Reuters reported on Tuesday.

Hong Leong Bank is Malaysia’s fifth largest by assets. The bank has procured undertakings from its parent group, Hong Leong Financial Group and Hong Leong Equities Sdn Bhd (HLE) to subscribe and, or procure the subscription in full for their respective entitlements to the rights shares.

The amount of their respective full entitlements for the rights shares are MYR1.907bil for HLFG and MYR18.9mil for HLE, totalling MYR1.926bil.

TMS CEO disposes 7.6% stake

The Media Shoppe (TMS) CEO Christopher Chan Hooi Guan has ceased to be a substantial shareholder in the Internet-based applications and solutions provider.

Chan has disposed of 66 million shares, representing a 7.58 per cent stake in the company, according to a Bursa Malaysia filing on Monday.

Chan and another shareholder Lee Chi Yeng have both ceased their shareholdings in the company through the disposal of their shareholdings in Master Knowledge Sdn Bhd, which is the single largest shareholder of TMS.

Details of the share sale were not disclosed.

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