United Malacca MGO: Tee Family’s RM6.10 Offer Draws Fire

Several insider moves on Bursa Malaysia landed in one week, led by a takeover offer at a plantation counter. Here are the numbers behind each one.

Why Did the Tee Family Trigger a Mandatory Offer for United Malacca?

Prosper Trading Sdn Bhd bought 28.19 million United Malacca shares from Great Eastern Life Assurance (M) Bhd for RM171.93 million in cash. That triggered a mandatory general offer (MGO) for the remaining 52.34% not controlled by the family.

The family also crossed the 33.33% MGO threshold on Sept 26, 2024, when its collective stake rose from 32.63% to 33.70%. It now plans to compensate shareholders who sold between September 2024 and October 2026.

Is RM6.10 Too Low for United Malacca Shareholders?

The offer sits RM1.35 below the net asset per share of RM7.45 as at end-July. Consensus target prices largely sit north of RM7.

Several research houses have recommended that shareholders reject the offer. United Malacca closed at RM6.07, a market capitalisation of RM1.27 billion.

What Happened to Zetrix AI’s Founder Stake?

Managing director Wong Thean Soon ceased to be a substantial shareholder in Zetrix AI Bhd (ZETRIX) after a forced sale of 498.03 million shares. He had controlled 29.25% as recently as early April this year.

Forced selling began around Aug 26, when shares traded at about 66 sen. The stock has since shed about 92% to five sen, a market value of RM394.9 million.

How Big Is Datuk Vijayasundram’s Stake in Turiya?

Datuk Vijayasundram Jeyabalan surfaced as a substantial shareholder in Turiya Bhd (TURIYA) with 9.09%, or 22.87 million shares, bought in a private placement at 40 sen. He is CEO of LSP Sdn Bhd and now ranks as the third-largest shareholder.

He trails Bin Zayed (S) Pte Ltd and executive chairman Datuk Seri Shamir Kumar Nandy, who each hold 28.89%. Turiya closed at 22 sen, 45% below the placement price, for a market value of RM55.4 million.

Placement funds are slated for, among other uses, upgrading Wisma Chase Perdana, a 12-storey building in Damansara Heights with 245,238 sq ft of net lettable area.

How Much Did Eastspring Sell in Foodie Media?

Eastspring Investments Bhd sold 4.61 million Foodie Media Bhd (FOODIE) shares on Oct 16, dropping below the 5% threshold. It first surfaced in early May with 5.04%, or 44.76 million shares.

The fund manager raised its stake to 5.34% (47.45 million shares) by end-June before trimming in early September. Foodie Media closed at 27 sen, a market capitalisation of RM239.8 million. For background on listings, see IPO Investing with M+ Global.

How Far Has EPF Cut Its AMMB Holdings Stake?

AMMB Holdings Bhd (KL:AMBANK) has fallen almost 16% from its record high of RM7.37 on Aug 12 to close at RM6.20, a market capitalisation of RM20.53 billion. The Employees Provident Fund (EPF) sold 30.91 million shares in the week, reducing its stake to 619.64 million shares or 18.71%.

EPF held 19.65%, or 650.81 million shares, at end-September. Rising bond yields, which pushed down debt paper prices, have created paper losses for banks and hurt investment banking revenue.

How Far Has Urusharta Jamaah Cut Its Malakoff Stake?

Urusharta Jamaah Sdn Bhd, controlled by Minister of Finance Inc, sold 14 million shares in Malakoff Corp Bhd (MALAKOF) on Oct 13 and 14. Its holding fell to 267.56 million shares or 5.47%, from 322.93 million shares or 6.61% at end-September.

Malakoff’s stock has shed about 16% since mid-June to end at 75 sen, a market value of RM3.66 billion.

Key Takeaways: Insider Moves on Bursa Malaysia

• United Malacca: RM6.10 MGO price sits RM1.35 below RM7.45 net asset per share.
• Zetrix AI: Wong Thean Soon’s stake fell below 5% after a 498.03 million share forced sale.
• Turiya: Vijayasundram holds 9.09% after a 40 sen placement; shares closed at 22 sen.
• Foodie Media: Eastspring dropped below 5% after selling 4.61 million shares on Oct 16.
• AMMB and Malakoff: EPF holds 18.71% of AMMB; Urusharta Jamaah holds 5.47% of Malakoff.

This article is for information only and is not financial advice. Figures are drawn from The Edge’s report. Please do your own research before making any decision on these stocks.

Frequently Asked Questions

Is the RM6.10 offer for United Malacca above its net asset value?

No. The RM6.10 offer is RM1.35 below United Malacca’s net asset per share of RM7.45 as at end-July.

How many AMMB Holdings shares does EPF own now?

EPF holds 619.64 million AMMB shares, or 18.71%, after selling 30.91 million shares in the week of Oct 12 to 16.

Did Zetrix AI’s founder keep his stake?

No. Wong Thean Soon fell below the 5% substantial shareholder threshold after a forced sale of 498.03 million Zetrix AI shares.

Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.

Want to invest in Bursa Malaysia or US markets? Contact Dexter Chia, an AI Driven Remisier who has 2,300+ clients at Malacca Securities Sdn Bhd (M+ Global). M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?