KUALA LUMPUR (July 5): Koh Poh Seng, who controls 46.13% in KPS Consortium Bhd, has emerged as a substantial shareholder of BTM Resources Bhd, a day after it was announced that Bioalpha Holdings Bhd's founder William Hon Tian Kok has taken up a substantial stake in the company.

BTM Resources, which tops the most actively traded list on Wednesday following the news of Hon's share acquisition, is principally involved in the logging, saw milling and trading of sawn timber, logs and plywood. KPS Consortium is primarily engaged in the manufacture of tissue-related products.

BTM Resources' bourse filing on Wednesday (July 5) showed Koh bought 137.78 million shares or 10.97% stake in the loss-making timber company on July 3 (Monday).

The purchase raised Koh’s stake in the company to 13.19% or 165.78 million shares. A back-of-envelope calculation indicated that the shares could have cost Koh RM12.40 million, based on BTM Resources’ closing price of nine sen a share on Monday.

On Tuesday, BTM Resources announced that Hon, who is also Bioalpha's managing director and chief executive officer, has acquired 60.51 million shares in BTM Resources via off-market trades last Friday (June 30). The purchase gave Hon a total shareholding of 95.57 million shares representing a 7.606% direct stake in the company.

Meanwhile, two other substantial shareholders have exited the company, according to separate BTM Resources filings on Wednesday, namely Yong Emmy and Modern Mode Sdn Bhd.

Yong disposed of 12.10 million shares or a 0.96% stake in the company on Monday. Post disposal, Yong was left with 56.27 million shares or a 4.48% stake in the company.

Modern Mode offloaded 97.45 million shares or a 7.76% stake in BTM Resources on the same day, leaving it with just 500,599 shares or some 0.03% equity interest in the company.

Another substantial shareholder, Datuk Woo Thin Choy, has pared down his shareholdings after disposing of 39.33 million shares or a 3.13% stake. After disposing of the shares, Woo was left with a 5.72% stake, comprising a directly held 2.87% (36 million shares) and an indirectly held 2.85% (35.85 million shares).

BTM Resources has been loss-making for six consecutive years between FY2017 and FY2022.

In its latest quarter ended March 31, 2023 (1QFY2023), the group’s net loss swelled to RM14.84 million, from RM1.86 million in 1QFY2022, due to lower revenue and its share-based payments under a Long Term Incentive Plan.

The share-based payments under its executive share grant scheme amounted to RM11.47 million in 1QFY2023. Revenue, meanwhile, dropped 41.38% to RM1.28 million, from RM2.18 million in 1QFY2022.

BTM Resources shares settled 0.5 sen or 5.56% higher at 9.5 sen on Wednesday, giving the company a market capitalisation of RM119 million. The stock, which rose to 11 sen a share at the start of the year, dropped to a low of six sen in mid-January, before gradually rising to its current level.