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INSIDE INSIGHTS

Bumitama Agri exec chairman acquires more of its shares

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For the five trading sessions spanning Dec 13 to Dec 19, the Straits Times Index (STI) gained 0.4 per cent with the Nikkei 225 Index, Hang Seng Index and S&P/ASX 200 Index averaging a 2.1 per cent return. This has brought the STI's 2019 total return through to Dec 19, to 8.9 per cent.

FOR the five trading sessions spanning Dec 13 to Dec 19, the Straits Times Index (STI) gained 0.4 per cent with the Nikkei 225 Index, Hang Seng Index and S&P/ASX 200 Index averaging a 2.1 per cent return. This has brought the STI's 2019 total return through to Dec 19, to 8.9 per cent.

Share buybacks

There were 10 primary-listed stocks conducting share buybacks over the five sessions ending Dec 19 with a total consideration of S$14.1 million, similar to the S$15.8 million for the preceding week. Oversea-Chinese Banking Corporation, Singapore Technologies Engineering and Keppel Reit again led the consideration tally.

Director and substantial shareholder transactions

The five sessions spanning Dec 13 to Dec 19 saw 110 changes in director interests and substantial shareholdingsfiled for close to 50 primary-listed stocks. There were 19 company director acquisitions and three disposals filed, with substantial shareholders filing eight acquisitions and eight disposals.

Singapore eDevelopment

Document Security Systems, Inc (DSS) has increased its total stake in Catalist-listed Singapore eDevelopment above the substantial shareholder threshold, from 1.9 per cent to 7.1 per cent. DSS was allotted 61,977,577 new exercised shares at the exercise price of S$0.04 for each new exercised share. With a consideration of S$2,479,103, these shares were allotted and issued on Dec 19, pursuant to the exercise of the warrants issued on Oct 21, 2016 (that were pursuant to the Rights cum Warrants Issue). There are 460,808,268 outstanding 2016 Warrants after the exercise and DSS now holds 44,005,182 of these 2016 Warrants which are exercisable into 44,005,182 shares.

Singapore eDevelopment is primarily involved in (i) property development and investments primarily in the United States and Western Australia; (ii) information technology-related businesses; (iii) development, research, testing, manufacturing, licensing and distribution of biomedical products; and (iv) investment activities. Following the Dec 19 transaction, the direct interest of Hengfai Business Development Pte Ltd (HBD) in Singapore eDevelopment was reduced from 69.1 per cent to 65.4 per cent. HBD also holds 359,834,471 of the 2016 Warrants which are exercisable into 359,834,471 shares.

Singapore eDevelopment executive chairman and CEO Chan Heng Fai is a director and the sole beneficial owner of HBD. Mr Chan Heng Fai and his associates are also entitled to exercise or control the exercise of not less than 20 per cent of the votes attached to the voting shares of DSS. Thus, Mr Chan's total interest in Singapore eDevelopment has increased from 72.7 per cent to 74.1 per cent.

Bumitama Agri

On Dec 16, Wellpoint Pacific Holdings acquired 2 million shares of Bumitama Agri for a consideration of S$1,455,000 at an average price of S$0.728 per share. This took the deemed interest of executive chairman and CEO Lim Gunawan Hariyanto in Bumitama Agri from 52.00 per cent to 52.12 per cent. Wellpoint Pacific Holdings' preceding acquisition was back on Sep 6, and saw Wellpoint Pacific Holdings acquire 400,000 shares of Bumitama Agri for a consideration of S$232,960 at an average price of S$0.5824 per share.

Mr Lim's father, Dr. Lim Hariyanto Wijaya Sarwono, is also deemed to be interested in the Bumitama Agri shares held by Wellpoint Pacific Holdings Ltd, a wholly-owned subsidiary of Fortune Holdings Limited. Mr Lim Gunawan Hariyanto joined the Group in 1997 when he was appointed director of PT Karya Makmur Bahagia. He was first appointed to the board on March 23, 2012, and re-elected on April 22, 2019. He is responsible for the formulation of the Group's business and corporate policies and strategies, business development as well as business and operations management.

United Global

On Dec 13, United Global executive director and CEO Jacky Tan Thuan Hor acquired 2 million shares of the Catalist-listed company at S$0.47 per share, and a consideration of S$940,000. This took Mr Tan's total interest in the Singapore-based lubricant manufacturer and trader from 35.38 per cent to 36.01 per cent. His preceding acquisition was on Nov 14, when 1 million shares were acquired at S$0.48 per share and prior to that was back on August 14, 2018, when he acquired 350,000 shares at S$0.40 per share.

Mr Tan is responsible for the overall strategic, management and business development of the Group. Mr Tan is one of the founders of the Group and has close to 20 years of experience in the lubricant industry. Mr Tan's spouse, executive director Ety Wiranto, also maintains a total stake of 36.01 per cent in United Global.

Zico Holdings

On Dec 12, Zico Holdings executive director Ng Hock Heng, disposed of 4 million shares of the Catalist-listed stock for a consideration of S$620,000. At S$0.155 per share, this reduced Mr Ng's direct interest in Zico Holdings from 3.22 per cent to 1.99 per cent. At Zico Holdings, Mr Ng is primarily responsible for the overall management of the Management and Support Services segment as well as the Licensing Services segment for the Group.

Wee Hur Holdings

On Dec 11, Wee Hur Holdings executive chairman and managing director Goh Yeow Lian acquired 2.1 million shares of the construction, property development and dormitory business for a consideration of S$451,500, at S$0.215 per share. Mr Goh's total interest in the listed company is 44.41 per cent. He was one of the founders of the Group and is responsible in the formulation of the Group's strategic directions and expansion plans and managing the Group's overall business development.

AMOS Group

Between Dec 12 and 18, AMOS Group executive chairman Kyle Arnold Shaw, Jr acquired 5,556,000 shares of the listed company for a consideration of S$222,819.

At an average price of S$0.04 per share, the acquisitions took his total interest in the marine and offshore product, services and solutions provider from 74.02 per cent to 74.23 per cent. This followed his acquisition of 7,433,000 shares between Dec 9 and 11 at S$0.0351 per share. Mr Shaw has been involved in Asian private equity fund management for 25 years and has led a variety of investment transactions across Asia. Following its acquisition of industry peer AMOS International Holdings in October 2018, energy services company Gaylin Holdings renamed itself AMOS Group, with AMOS an acronym for All Marine Offshore Solutions.

China Star Food Group

On Dec 17, Mr Luo Fangfen disposed of 2,599,400 shares in the Catalist-listed China Star Food Group for a consideration of S$75,383. At an average price of S$0.029 per share, this reduced Mr Luo's deemed interest in China Star Food Group from above the substantial shareholder threshold to 4.83 per cent, from 5.27 per cent.

Hai Leck Holdings

Between Dec 12 and 17, Hai Leck Holdings (Hai Leck) founder and executive chairman Cheng Buck Poh acquired 129,000 shares of the EPC services company for a consideration of S$68,000 at an average price of S$0.527 per share. This took his total interest in Hai Leck from 84.45 per cent to 84.51 per cent. Mr Cheng started Hai Leck Engineering as a sole proprietorship in 1971 and he is currently responsible for charting the corporate directions and strategies for Hai Leck. Mr Cheng's total interest in Hai Leck was 83.34 per cent at the end of August 2018.

UOB-Kay Hian Holdings

Between Dec 12 and Dec 13, UOB-Kay Hian Holdings (UOBKH) chairman and managing director Wee Ee Chao increased his total stake in UOBKH, which is now at 29.49 per cent. Mr Wee acquired 43,500 shares for a consideration of S$53,070 at S$1.22 per share. The UOBKH chairman has gradually increased his total stake in UOBKH from 26.51 per cent at the end of 2017.

Heeton Holdings

On Dec 12, Heeton Holdings deputy chairman and executive director Toh Giap Eng acquired 100,000 shares of the real estate conglomerate for a consideration of S$45,725. At an average price of S$0.457 per share, this took Mr Toh's total interest in Heeton Holdings from 40.18 per cent to 40.21 per cent. This follows Mr Toh's acquisition of 500,000 shares at S$0.460 per share on Dec 10 and 300,000 shares at an average price of S$0.467 per share between Nov 29 and Dec 2. Mr Toh's role at Heeton Holdings is to identify and secure investment and development properties in new markets, explore and develop related or new businesses as well as assist the chairman in the overall stewardship and governance of the Group.

Hwa Hong Corporation

On Dec 16, Hwa Hong Corporation substantial shareholder Steven Ong Kay Eng acquired 103,700 shares of the listed company for a consideration of S$32,666. At S$0.315 per share, this increased his direct stake in Hwa Hong Corporation from 15.684 per cent to 15.700 per cent. This followed Mr Ong acquiring 209,000 shares at S$0.315 per share between Dec 9 and 10.

TalkMed Group

Between Dec 17 and 18, the spouse of TalkMed Group non-executive chairman and independent director Chandra Das acquired 35,000 shares of the Catalist-listed company. This took Mr Das's deemed interest in TalkMed Group from 0.073 per cent to 0.076 per cent.

G K Goh Holdings

On Dec 16, GKG Investment Holdings Pte Ltd (GKGI) acquired 5,000 shares of G K Goh Holdings for a consideration of S$4,150 at S$0.83 per share. GKGI's total interest in the listed company is 60.67 per cent. GKGI's preceding acquisitions were between Dec 9 and 11, with 39,700 shares at an average price of S$0.8391 per share; and between Dec 3 and 5 with 46,100 shares acquired at S$0.8354 per share. G K Goh Holdings executive chairman Goh Geok Khim and executive director Goh Yew Lin have controlling interests in GKGI.

Envictus International Holdings

Between Dec 13 and 18, Envictus International Holdings non-executive director and vice chairman Sam Goi Seng Hui marginally increased his total interest in the stock from 24.55 per cent to 24.56 per cent. Mr Goi, who is also the executive chairman of Tee Yih Jia Group and GSH Corporation, acquired 23,200 shares of Envictus International Holdings for a consideration of S$2,598 at an average price of S$0.1171 per share. This followed his acquisition of 694,800 shares at an average price of S$0.1171 per share between Dec 5 and 10.

  • The writer is the market strategist at Singapore Exchange (SGX). To read SGX's market research reports, visit sgx.com/research.

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