KUALA LUMPUR (July 31): Genetec Technology Bhd co-founder Aaron Chen Khai Voon is tightening his grip on Seal Inc Bhd, further raising his shareholding in the property developer to 28.24%.

On July 28, Chen acquired 44.78 million shares or an 11.81% stake in Seal Inc, following the subscription of 62.29 million shares, or a 16.43% stake, for RM16.19 million or 26 sen per share in May this year.

The block of shares was acquired from Datin Seri Tan Guik Lan, who stepped down as Seal Inc’s non-executive director on Monday. With the disposal, Tan does not own any shares in the company.

In a bourse filing on Monday (July 31), Seal Inc said that Chen had acquired the shares in three tranches under a direct business deal.

Though no details on the purchase price were provided, a back-of-the-envelope calculation indicates that Chen may have acquired his recent stake for about RM23.96 million, based on Seal Inc’s closing price of 53.5 sen last Friday (July 28).

Notably, Tan’s son, Koay Shean Loong, sits on the board of Seal Inc as an executive director. He owns direct and indirect stakes of 7.86% and 6.31% stakes in the company respectively.

Some RM15.6 million proceeds raised from Seal Inc’s recent private placement has been earmarked for business expansion to include renewable energy, namely engineering, procurement, construction and commissioning (EPCC) for solar and related renewable energy activities.

Coincidentally, Chen owns a company called MSR Green Energy Sdn Bhd, which is involved in renewable energy. The firm undertakes EPCC project management and consultancy for solar photovoltaic projects.

For the first nine months of the financial year ended June 30, 2023, Seal Inc incurred a net loss of RM2.2 million against a net profit of RM2.37 million in the same period a year ago, mainly due to the reduction in interest income and the spike in administrative expenses arising from the increase in overhead expenses to support the implementation of latest development under the property management segment.

At the closing bell, Seal Inc's shares rose 3.5 sen or 6.54% to 57 sen, giving it a market capitalisation of RM214.38 million.

Chen is the largest shareholder of Genetec — which is principally engaged in designing and building of customised factory automation equipment and integrated vision inspection system — with a 12.03% stake.

Meanwhile, Koay remains as the second-largest shareholder in Genetec with a 6.57% equity interest.

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