31 May 2017, Road maintenance company Protasco Bhd since the single largest shareholder cum Executive Director Chong Ket Pen took control 3 years ago had saw series of massive press coverages and public relations promoting company prospects and Chong personal publicity being excessive. The share price however had been consistently going downhill over the last 3 years, with dividend yield lower than share price declines, and profit margin going South. The golden days of high margin concession income during the former substantial shareholders’ era had faded.

The mysterious shareholders fight between Chong and new substantial shareholders was classic, where Chong won the battle only to know that the plate is too large for him to chew. While Chong is trying to recreate the old glory of former substantial shareholders, business environment had gone against him. Share price tanked, and institution investors fled. However, this has created buying opportunity for other institution investors such as Employees Provident Fund Board (EPF) to collect over 25,742,000 shares, or 6% as of 29 May 2017.

Bursa Malaysia had shown EPF announcements as follow:

25 May 2017 - Great Eastern Holdings Limited exit being a substantial shareholder 

26 May 2017 - EPF acquired additional 635,000 shares to add up to 21,503,900 shares

29 May 2017 - EPF acquired more shares

30 May 2017 - EPF acquired more shares

31 May 2017 - EPF acquired more shares

The accumulation of shares by EPF is likely to happen over time, which gave the company short term relieves from negative perception and loss of investors’ confidence. With the few left over government linked public listed company control by Chinese businessman in the market, the shareholders fight had created perfect opportunity for predatory funds to take the last prize. The current single largest shareholder worst nightmare and fear of losing power might just got started and turns reality eventually.

FL FinNews

Changes in Sub. S-hldr's Int (Section 138 of CA 2016)

Particulars of substantial Securities Holder

Details of changes