Little share price change despite TH assets transfer to SPV


Share price of stocks formerly owned by Lembaga Tabung Haji (TH), which were sold to the government-owned special-purpose vehicle (SPV) Urusharta Jamaah Sdn Bhd under an almost RM20 billion asset for cash deal, remained stable despite worries of the large sum of shares involved.

Investors’ anxiety had heightened since the announcement of the bailout of TH non-performing assets, which would drag the prices of the stocks.

The incoming new major shareholder, Urusharta Jamaah, had also caused alarm among some investors.

Urusharta Jamaah has taken over the shares in some 44 companies worth RM2.6 billion since TH commenced the re-structuring exercise last Friday.

The SPV has emerged as a substantial shareholder in several public-listed companies. But prices of the counters have been less volatile despite the incoming new major shareholder.

The latest filing showed TH transferred 17.33 million shares in Notion VTec Bhd to the SPV on Dec 28, 2018.

Notion VTec’s closed at 57 sen yesterday, down one sen or 1.71%, giving it a market capitalisation of RM190.32 million.

The listed companies whose shares had been transferred also included FGV Holdings Bhd, Hap Seng Plantations Holdings Bhd, MMC Corp Bhd, TH Heavy Engineering (THHE), Pelikan International Corp Bhd, Malaysia Marine & Heavy Engineering Holdings Bhd (MHHE), Boustead Heavy Industries Corp Bhd (BHIC), Icon Offshore Bhd, Brahim’s Holdings Bhd and Naim Holdings Bhd.

The shares of several companies involved remain unchanged yesterday, including Hap Seng Plantations which remained flat at RM1.68, THHE at three sen, Icon Offshore at seven sen, Brahim’s Holdings at 20 sen and Naim Holdings at 45 sen.

Meanhwile, FGV’s shares closed at 70 sen yesterday with a one sen or 0.72% increase.

MMC Corp’s shares were up one sen or 1.2% to 84 sen, MHHE up three sen or 4.42% to 59 sen, and BHIC up one sen or 0.78% to RM1.30.

However, there are also some companies which recorded a slight decrease in their share price, including Pelikan International which was down by one sen or 1.45% to 34 sen.

According to Bloomberg, TH currently has substantial shareholdings valued at RM9.95 billion in 59 companies.

Its top three largest holdings by value comprise its 53.47% stake in BIMB Holdings Bhd valued at RM3.16 billion, followed by 2.29% in Tenaga Nasional Bhd (RM1.78 billion) and 1.79% in Maxis Bhd (RM761.45 million).

The Malaysian Reserve (TMR) previously reported that investors had dumped shares in companies linked to TH last month, as worries heightened on a major sell-off by larger funds which could further hammer down the values of these companies.

Rakuten Trade Sdn Bhd VP of research Vincent Lau said  earlier last year that investors with shareholdings in TH-linked firms may be looking to pare down their shareholding before the fund made a move by year-end.

“It is a situation where people want to sell before they (TH) sell. It’s not so much that they are concerned with what is going
on at TH,” Lau told