SINGAPORE (Feb 14): Bobby Lim Chye Huat, a substantial shareholder of Asiatic Group Holdings, has halved his stake in the company from 11.95% to 6.04% following an off-market sale on Feb 5. Lim, who used to own 186 million shares in the company, sold 92 million shares for $736,000, or an average of 0.8 cent.
Lim sold his stake to brothers Tan Boon Siang and George Tan Boon Kheng. In their respective filings on Feb 4, the company stated that Boon Siang, the company’s executive director, increased his stake by 70 million at the cost of $560,000. Boon Kheng, the managing director, on the same day, paid $176,000 for 22 million shares. Boon Siang now owns 9.01% of the company, up from 4.51% earlier while Boon Kheng now owns 9.07%, up from 7.66% earlier.
This significant change in shareholding came just a week after Asiatic announced on Jan 28 the cancellation of its plan to sell its stake in a loss-making biomass power plant.
On Nov 20, Asiatic announced that its subsidiary, Colben Energy Holdings (Maju Intan), had entered into a non-binding agreement to sell its stake in an entity called Maju Intan Biomass Energy (MIB), which is the holding company of a biomass power plant. The company said it was not revealing the value of the sale due to “commercial sensitivity”.
“The board believes that the proposed disposal is in the best interests of the group, providing an opportunity to dispose of the group’s interest in the loss-making Maju Intan Biomass Power Plant (held by MIB) and enhance the long-term interests of the group and its shareholders,” says Asiatic in the filing.
Bio Eneco, the potential buyer, is a Malaysian supplier of high-grade biomass fuels, such as wood pellets, wood chips and palm kernel shells. Asiatic says Bio Eneco has no relation with any of its directors, substantial shareholders or business associates.
As of Nov 20, Asiatic holds a 30% stake in MIB. It also owns a tranche of convertible bonds carrying an interest of 12% per year issued by other MIB shareholders. The bonds will mature in 2022. For the six months ended Sept 30, 2019, Asiatic reported earnings of $500,000, up 809.9% y-o-y. Revenue in the same period was $22.4 million, up 29.55%.
Second Chance Properties
Mohd Salleh, executive chairman of Second Chance Properties, has been nibbling on shares of his company from the open market this past month. The most recent purchase, for 12,600 shares, was made on Feb 6. He paid $3,150, which works out to 25 cents per share. He now owns a total stake of 67.62% in the company, consisting of both direct and deemed shares of 510,774,819 shares. Prior to Feb 6, he bought 172,000 shares for $43,000 on Feb 5, and 218,000 shares for $53,410 on Feb 4.
For 1QFY2020 ended Nov 30, 2019, Second Chance reported earnings of $2.1 million, an improvement of 874.31% over the same period last year. Revenue in the same period was down 1.89% y-o-y to $6.35 million. As at Nov 30 2019, the company’s net asset value was 35.18 cents, up from 34.72 cents as at Aug 31, 2019.
As of Nov 30, 2019, Second Chance carried an investment portfolio of properties of some $159.55 million. These properties are largely retail units within strata-titled malls such as Sim Lim Square and City Plaza. In addition, Second Chance carried another $21.29 million worth of properties classified as property, plant and equipment, as it was the company’s own use. Besides collecting rental income from properties, the company invests in shares too. As of Nov 30, 2019, Second Chance owns shares worth some $58.08 million, an increase of some $1.5 million from Aug 31, 2019.
