Chng Beng Hua, executive director of International Cement Group (ICG) that owns cement plants in Central Asia, recently acquired 2.5 million shares from the open market.
On Aug 7, he acquired 1.5 million shares for $37,500, which works out to an average of 2.5 cents each. On Aug 11, he acquired another one million shares for $42,150, or a significantly higher price of 4.215 cents each. Chng now holds a direct stake of 14.5 million shares. He is deemed to be interested in another five million shares, four million of which are held under his wife’s name, and one million held under CPF. Chng therefore has a total of 19.5 million shares, which works out to 0.34%.
ICG used to be known as Compact Metal Industries, before Ma Zhaoyang, chairman and executive director, took control by injecting his cement interests into the listed entity and became the controlling shareholder. He now owns a stake of around 80%.
On Aug 6, ICG reported earnings of $6 million for the 1HFY2020 ended June, up 23% y-o-y. Revenue in the same period was up 9% y-o-y to $63.1 million. The higher revenue was led by higher sales of cement in Tajikistan, but partially offset by lower revenue generated by the aluminium division, which was hit by the “circuit breaker” measures in Singapore which put a halt to most construction activities. As at June 30, the company’s net asset value per share was 3.6 cents, up slightly from 3.58 cents as at Dec 31, 2019. Cash and cash equivalents came in at about $20 million.
Last year, the company tried to acquire a cement business in Africa in a deal worth just over US$100 million ($137 million) but the Singapore Exchange (SGX0 refused to give its approval.
Brothers in arms
Meanwhile, Chng Beng Hock, brother of Beng Hua, was himself busy acquiring shares in another company. Beng Hock used to be a director at Compact Metal and he is also a substantial shareholder of Vibropower Corporation.
On Aug 13, Beng Hock acquired 23,700 Vibropower shares for 13.8 cents each. He now holds 3.66 million shares directly and is deemed interested in another two million shares under Phillip Securities. That brings his total stake to some 5.66 million shares, or 10.502%, up from 10.458% previously.
Before the latest transaction, Beng Hock had acquired 30,300 shares for 13.9 cents each on Aug 12; 46,400 shares for 14.3 cents each on Aug 11; 48,200 shares for 14.37 cents each on Aug 4; and 10,200 shares for 14.39 cents each on Aug 1. He had bought steadily during last month as well.
On Aug 14, Vibropower reported losses in 1HFY2020 ended June widened to $1.38 million from $24,000 in 1HFY2019. Revenue in the same period was down 64.4% y-o-y to $2.77 million, due to lower revenue from both its project and powerplant businesses. As at June 30, Vibropower’s net asset value per share stood at 25.87 cents, down from 38.31 cents as at Dec 31, 2019.
Logistics services provider
On Aug 7, Eric Kua Kian Keong, CEO of logistics company Vibrant Group, acquired 50,000 shares at 10 cents each on the open market. He now holds a direct stake of 65.6 million shares. He also holds a deemed stake of 335.5 million shares. In total, he holds some 401.1 million shares, or 57.921%, up from 57.914%. Earlier on July 29, via a married deal, Kua had acquired 28.1 million shares at 12 cents each.
On Aug 14, SGX RegCo announced it had reported irregularities in Blackgold International Holdings, a subsidiary of Vibrant Group, to the “relevant authorities”. Citing a special audit by Ernst & Young Advisory, Blackgold might have made potential significant misstatements in its financial statements and that Blackgold Management may have potentially falsified accounting records and announced false financial information on the Australian Securities Exchange when it was listed there.
In addition, other Singapore-listed companies will be required to consult SGX RegCo before they appoint a list of previous Blackgold management personnel. The list includes former Blackgold CEO Peng Yuguo and former CEO Tin It Phong and three others.
