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Hot stock: KLW gains after news that CEO will sell entire stake in firm

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Catalist-listed KLW Holdings saw its counter gain 0.1 Singapore cent, or 14.3 per cent, to S$0.008 in trading on Friday morning.

CATALIST-LISTED KLW Holdings saw its counter gain 0.1 Singapore cent, or 14.3 per cent, to S$0.008 in trading on Friday.

The door maker's share price movement followed its announcement on Thursday night that its CEO and controlling shareholder Quek Chek Lan will sell his entire stake in KLW to Sunny Wealth Ltd.

Mr Quek's holdings of 1,044,185,000 ordinary shares represents about 19.41 per cent of the entire issued and paid-up capital of KLW. He had acquired the bulk of his stake last August for about 0.41 Singapore cent per share.

In the wake of a boardroom fight, Mr Quek was appointed the company's CEO in October last year.

The buyer of Mr Quek's shares, Sunny Wealth, is incorporated in British Virgin Islands and Wong Ben Koon is its sole shareholder, KLW said.

"The board is informed that the divestment is expected to complete on or before June 27, 2016," it added.

The announcement was made after KLW called for a trading halt on Thursday morning. Trading of its counter resumed on Friday morning.