Malaysian firms announced a slew of stake changes over the past week with venture firm OSK Ventures selling off all its shareholding in Green Packet, Eversendai buying S-Con Engineering of Thailand and Daya Materials selling stake to a native-controlled firm for strategic reasons.
OSKVI hives off stake in Green Packet for $7.9m
The venture capital firm told Bursa Malaysia in a filing that its unit OSK Technology Ventures Sdn Bhd has disposed of the 109.895 million MYR0.20 shares, priced at MYR0.30 each. The disposal was done through direct business transaction and was expected to result in a MYR1.1 million ($260,000) loss at OSKVI group level.
The firm explained that based on the relatively low trading volume and marketability of the sale shares, any disposal of a large quantity of the sale shares in the open market might cause material and adverse effect to their market price.
“In light of the above, we believe the disposal provides a good opportunity for OSK Technology Ventures to harvest the value of its investments in Green Packet Bhd and to dispose its shareholdings in Green Packet at a premium over its recent market prices amidst low daily trading volume recorded by Green Packet over the preceding few months,” OSKVI said.
Cash proceeds from the disposal would provide the OSKVI group additional flexibility in managing its funding requirements for future growth and reinvestment into other potential high growth business opportunities, it added.
Eversendai to acquire 70% in Thai steel company S-Con Engineering
Eversendai said, the acquisition would open opportunities for it to bid for steel, composite structures, power and petrochemical plant as well as infrastructure projects in Thailand and its surrounding regions.
S-Con has over 20 years of experience in carbon steel and stainless steel fabrication, mechanical construction and installation. It offers full turnkey solutions in design, project management, equipment supply, system installation, commissioning and maintenance.
Executive chairman and group managing director A. K. Nathan said, the proposed acquisition would enable Eversendai to utilise S-Con’s track record to strengthen its relationship with its clients, and is in line with the group’s plans to expand in the Southeast Asian region.
Daya Materials sells 17% in unit to enhance native equity ownership
Daya Materials Bhd is disposing of a 16.9 per cent stake in its subsidiary Daya OCI Sdn Bhd (DOCI) to Rancak Nikmat Sdn Bhd for MYR9.2 million ($2.2 million), for the purpose of increasing bumiputera (native) equity ownership in DOCI.
In a filing with Bursa Malaysia on Tuesday, the integrated oil and gas company said following the disposal, Daya Materials’s shareholdings in DOCI should dwindle to 50.1 per cent, Rancak Nikmat’s stake should strengthen to 41.8 per cent and Wiramas Baiduri’s shareholdings will remain unchanged.
Prior to the disposal, the existing shareholders Daya Materials held 67 per cent stake, Rancak Nikmat 24.9 per cent and Wiramas Baiduri Sdn Bhd 8.1 per cent.
The price was arrived at on a willing buyer-willing seller basis after taking into consideration the net assets of DOCI of MYR28.17 million, based on the audited accounts for the financial period ended December 31, 2014.
“In its ordinary course of business, Daya Materials requires certain licenses and permits to operate its business. The licenses issued enable the group to market our products and services and are subject to bumiputera shareholding requirements and various employment and operating conditions.
“Therefore it is crucial and important for us to ensure that there is sufficient bumiputera equity ownership in DOCI,” it added.
The proceeds raised from the disposal will be utilised for Daya Materials’ working capital, which include operating expenses as well as repayment of trade and other payables, it said.