Newsbreak: Gunung Capital may see emergence of new major shareholders TheEdge Mon, Jan 20, 2020 05:00pm - 19 hours ago
LOSS-making passenger vehicles charterer Gunung Capital Bhd, whose share price soared 73% in the past month, is expected to see the emergence of new substantial shareholders, according to sources.
The Edge learnt that the previous owners of textile manufacturer Kumpulan Powernet Bhd — led by Datuk Chew Kam Wah — are set to surface as the new major shareholders of Gunung Capital.
Meanwhile, the existing shareholders of Gunung Capital — led by its current group managing director and CEO Datuk Syed Abu Hussin Hafiz Syed Abdul Fasal — could be gradually exiting the company.
“Ideally, the ex-owners of Kumpulan Powernet will be looking to take up a controlling stake in Gunung Capital. But all these will not happen overnight as it might potentially trigger an MGO (mandatory general offer) or even RTO (reverse takeover),” says a source familiar with the matter.
“Datuk Syed (Abu Hussin) had been looking for potential buyers to take up his stake since last year, but there was no material development until recently,” the source says.
As at April 1 last year, Syed Abu Hussin was the single largest shareholder of Gunung Capital with equity interest of 27.98%, of which 23.81% was a direct stake.
Erayear Equity Sdn Bhd, controlled by Azhan Zakaria, is the second largest shareholder of Gunung Capital with an 11.78% stake, followed by Ooi Hock Lai with a 10.27% stake. Both Azhan and Ooi do not sit on the board of Gunung Capital.
Another source reveals that the buyers and sellers have agreed to conduct the transaction at 50 sen to 55 sen apiece.
“The first [likely] step for the buyer is to acquire Erayear Equity’s entire stake in Gunung Capital, or maybe even the whole entity (Erayear Equity), followed by other blocks of shares owned by Datuk Syed (Abu Hussin). The whole process might take at least two to three months,” he says.
So, who are the prospective buyers of the shares in Gunung Capital?
Some of the names that have come up are Kam Wah, Chew Chee Bor — better known as CB Chew — as well as Datuk Lee Chong Hoon, the elder brother of former national shuttler Datuk Lee Chong Wei.
Notably, all three of them were, one way or another, involved in Kumpulan Powernet, before Datuk Dr Mohd Abdul Karim Abdullah — founder and group CEO of Serba Dinamik Holdings Bhd — emerged as its new major shareholder last June.
Ex-Kumpulan Powernet
Before Karim surfaced at Kumpulan Powernet, Kam Wah and Chong Hoon were the two largest shareholders of the company, while Chee Bor was, and still is, the director of its two subsidiaries.
Recall that SSF Home Builder Sdn Bhd — an Ipoh-based property firm ultimately controlled by 42-year-old Kam Wah — had on June 20 last year sold its entire 10.99% stake in Kumpulan Powernet to Karim.
On the same day, Lee Chong Hoon Capital Sdn Bhd, a private vehicle named after Chong Hoon, also sold its entire 8.96% stake in Kumpulan Powernet to Karim.
Chee Bor is linked to Kumpulan Powernet as he is the director of its 51%-owned CBG Builders Sdn Bhd and CBG Capital Sdn Bhd — both inactive property developers.
Interestingly, a quick check with the Companies Commission of Malaysia (SSM) shows that Chong Wei Binajaya Sdn Bhd owns the remaining 49% stake in CBG Builders and CBG Capital.
It is not known whether Kam Wah and Chee Bor are related. The duo and Chong Hoon, however, seem to be closely linked to each other.
Now, assuming that Kam Wah and Chong Hoon made a killing together at Kumpulan Powernet, it will not be a surprise if they were to surface at Gunung Capital together.
Looking at the recent share price performance of Gunung Capital, it is safe to assume that something is brewing at the company.
Its shares have risen 73%, from 30 sen on Dec 6 last year to settle at 52 sen last Tuesday, giving it a market capitalisation of RM122.8 million. The counter is currently trading at a price-to-book value of 1.2 times, against its net assets per share of 40.8 sen as at Sept 30 last year.
Gunung Capital is principally engaged in the chartering of its fleet of land-based transportation assets and speciality vehicles.
Through its wholly-owned subsidiaries, GPB Corp Sdn Bhd and Gunung Resources Sdn Bhd, as well as its indirect wholly-owned subsidiary, Bas Rakyat Sdn Bhd, Gunung Capital is focused on chartering its transportation assets to the government, companies with substantial fleet requirements, shuttle bus services within university campuses and ad-hoc charters.
Currently, Gunung Capital, via GPB Corp, is operating the fleet requirements of the Malaysian Ministry of Defence to transport school-going children of the armed forces personnel nationwide.
The group has allocated 233 units of 44-seater buses and 85 units of 25-seater buses to fulfil its obligations under a service contract, whose value over three years is up to RM43.904 million.
1. Details of Corporate Proposal Involve issuance of new type/class of securities ? No Types of corporate proposal ESOS Details of corporate proposal Exercised of share options No. of shares issued under this corporate proposal 1,650,000 Issue price per share ($$) Malaysian Ringgit (MYR) 0.4100 Par Value($$) (if applicable) Latest issued share capital after the above corporate proposal in the following Units 237,829,708 Issued Share Capital ($$) Malaysian Ringgit (MYR) 95,154,893.000 Listing Date 23 Jan 2020
Gunung biz does not correlate so much to current economic or market conditions. On top Gunung currently can be catogarised as i a special condition stock. Apart from its involvement in growing green energy, it is in the midst of changing its controlling shareholder.
Sudah cukup Angpaw lol .......take profits looking for other stock is much more safe..hahaha Karlos cheers ........or you can choose to take half of your invest in Gunung....risky !!!!
Yalor ....for those buy low and sell high ..profits taking nothing wrong....and for those buy on high and wanna selling higher also nothing wrong ....Your money come to my pocket nia ...haha
Current chairman and controlling shareholder selling big block of 2.3m at 63 sen! The big buyer probably new controlling shareholders must value it more than 63 sen then.
If they are slowly clearing off, who are they going to sell to? A lot of shares can't be sold in this relatively illiquid stock. So if they are not medically crazy, then the logical and only conclusion is that they are actually buying more. These type of market investors, are very rare these days, but they go for all, Why leave anythimg on the table (in the food perspecive and also in the poker persective).
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
alibaba123456
208 posts
Posted by alibaba123456 > 2020-01-16 14:11 | Report Abuse
anytime from now to further shoot upwards......second big uptrend wave to be coming.....tighten your safety belts