Substantial shareholder Gano Global Supplements Pte Ltd has trimmed its stake in DXN Holdings Bhd to 8.79% after disposing of a 4.5% stake, comprising 223.77 million shares, in a direct business deal believed to be at 60 sen per share for a total of RM134.26 million.

KUALA LUMPUR (Nov 11): DXN Holdings Bhd’s substantial shareholder Gano Global Supplements Pte Ltd has trimmed its stake in the direct selling company to 8.79% after disposing of a 4.5% stake in a direct business deal.

The company did not disclose the selling price, but Bloomberg data showed that the 4.5% stake, comprising 223.77 million shares, changed hands at 60 sen per share for a total of RM134.26 million.

Gano Global, the investment vehicle of KV Asia Capital Pte Ltd, had originally acquired a 25.7% stake in DXN in 2017, according to DXN's 2024 annual report.

Last week, DXN said it plans to charter a Gulfstream G550 corporate jet at a cost of up to US$6.6 million (RM29.06 million) a year to expand its global business.

The aircraft is owned by LSJ Logistics Ltd, a wholly owned unit of LSJ Global Sdn Bhd, which is also a major shareholder of DXN, making the deal a related party transaction. LSJ Global, which holds 68.12% in DXN, is controlled by DXN executive chairman and founder Datuk Lim Siow Jin.

The majority of DXN's sales are generated outside Malaysia, with the Latin America market contributing 57.9% of the group’s total sales of RM1.9 billion for the financial year ended Feb 29, 2024 (FY2024), followed by the Asian market, which contributed 25.8%, mainly driven by India.

The company, which sells health and wellness products, has 13 manufacturing facilities, of which 11 are located outside of Malaysia, with another two being constructed in Bangladesh and Nepal.

Following the aircraft lease announcement, DXN's shares fell to a record low of 49 sen last Friday (Nov 8).

On Monday, DXN closed half a sen or 1.02 higher at 49.5 sen, valuing the company at RM2.46 billion. The stock, listed in May last year, is down 28% from its initial public offering price of 69 sen.