MyEG MD sells stake in MUI, Palette Multimedia

Wong says he acquired insubstantial stakes in MUI and Palette as ‘passive investments’


MYEG Services Bhd’s MD Wong Thean Soon (picture) said he has sold shares in Malayan United Industries Bhd (MUI) and has no intentions to take over the latter despite news reports last week suggesting as much.

Wong said he acquired insubstantial stakes in MUI and Palette Multimedia Bhd as “passive investments” and has sold both holdings, and will refrain from passive investing in listed companies in the future.

“Unfortunately, certain media quarters have extracted information from the annual reports and published stories that created the misperception of impending merger and acquisition activity,” Wong noted in a statement yesterday.

Both MUI’s and Palette’s counters nosedived yesterday on the release, falling 18.87% and 17.35% respectively.

MUI closed five sen lower at 21.5 sen with 134.64 million shares exchanging hands, while Palette closed 8.5 sen lower at 40.5 sen with 117.3 million shares traded.

MyEG’s share price rose one sen at RM2.15.

A local news daily last week stated a local party was keen to acquire Tan Sri Khoo Kay Peng’s 47.58% stake in MUI, which is involved in property, hotel, retail, financial, and food and beverage businesses.

Its assets include Pan Malaysia Holdings Bhd, Metrojaya Bhd and the Corus Hotels chain.

Wong was named as a possible suitor despite holding less than 1% stake in MUI as of June 30 this year.

Wong is presently the largest shareholder in MyEG with a deemed interest of 38% of the issued shares.

The company is undertaking efforts to capture a larger market in the foreign worker-related business and diversify its portfolio to include the foreign workers accommodation programme (FWAP).

The FWAP business is expected to contribute to 25% or more of the net profits brought in by the MyEG group.