The family controlling lubricant manufacturer and United Global has been buying up shares of their company via a series of married deals in recent months. On Oct 26, non-executive chairman Edy Wiranto bought 2.3 million shares for $966,000 or 42 cents per share.
Just a few months earlier on June 30, he had acquired four million shares for 41 cents each via a married deal. Wiranto now holds a direct stake of nearly 15.1 million shares or 4.77% of the company. In addition, he has a deemed stake of 3.17 million shares held by his wife. This gives him a total stake of 18.26 million or 5.77%.
Edy Wiranto was appointed to the board of United Global as chairman of the company on Aug 1. He takes over from his father, who goes by one name, Wiranto.
Edy’s brother-in-law, Jacky Tan Thuan Hor (image), CEO of United Global, increased his stake in the company as well. On May 3, Tan acquired three million shares for $1.4 million or 47 cents each. Coupled with 12.7 million shares held by Tan’s wife, Ety Wirianto, Tan now has a total interest of nearly 116.9 million shares or 36.96% of the company. Earlier March 3, Tan had acquired three million shares or 47 cents each via a married deal too.
On Aug 11, United Global announced earnings of US$1.7 million ($2.3 million) in 1HFY2020 ended June 30, down 63.5% from US$4.6 million a year ago. This was because United Global recognised only 60% of its share of profits in a subsidiary, following the sale of a 40% stake last year to Madrid-listed international oil and gas company, Repsol.
Tan notes that the impact of the pandemic has not severely affected the company’s core lubricants business as many of its customers in various countries around the world were operating essential services.
“The decline in global crude oil and base oil prices has also boosted the margins of our lubricants business. Looking ahead to the second half of FY2020, we are expecting the broad-based effects of the pandemic to continue to pose challenges to the group’s businesses and we remain diligent and disciplined in managing our costs and receivables,” says Tan.
As at June 30, United Global’s NAV was 30.8 US cents, down from 32.7 US cents as at Dec 31, 2019. Its cash position was robust, with total cash and cash equivalents amounting to US$32.5 million.
Goi Seng Hui, a substantial shareholder of Hanwell Holdings, scooped up shares in the company. In a Singapore Exchange filing on Oct 29, the company said that Goi bought 423,000 shares at 28.5 cents each, and another 132,000 shares, also at 28.5 cents. He now holds a direct stake of nearly 15 million, or 2.7%. In addition, he is deemed interested in another 95.9 million shares, which brings his total stake to nearly 110.9 million shares, equivalent to 20.03%.
Goi bought the shares in the wake of the recent resignation of Allan Yap, who was executive chairman of Hanwell as well as Hanwell’s subsidiary, Tat Seng Packaging. Yap quit on Sept 23 from both boards after he was made a bankrupt in Hong Kong.
In the lead-up to and after Yap’s resignation, his wife Tang Cheuk Chee has been actively buying up shares from the market. Since the start of September, she has bought around 7.5 million shares in total. Most recently on Sept 25, she bought a total of 300,100 shares at 27.5 cents each. Tang, who is an executive director of Hanwell, now has a total stake of nearly 108.4 million shares, equivalent to 19.58%.
On Aug 13, Hanwell reported earnings for 1HFY2020 more than doubled to $9.9 million as it enjoyed better margins even though revenue dipped slightly.
