KUALA LUMPUR (May 21): Annum Bhd’s (KL:ANNUM) largest shareholder, Datuk Seri Chin Kok Foong, has disposed of his entire 14.83% stake in the Practice Note 17 (PN17) wood-based products manufacturer.

The former executive director of engineering construction firm Ageson Bhd (KL:AGES) sold the stake comprising 33.73 million shares on May 16 in a direct business transaction, according to Annum’s exchange filing on Monday.

The filing did not reveal the disposal value. However, based on the company’s closing price of seven sen on Thursday, Annum would have earned RM2.36 million from the transaction.

Chin had re-emerged in February last year as Annum’s substantial shareholder when he bumped up his stake to 14.83%, from 2.02% previously, following the subscription of 29.13 million rights shares. He ceased to be the company’s substantial shareholder in March 2022.

Meanwhile, in a separate filing, Annum said that Ageson’s largest shareholder and former non-executive director Datuk Seri Larry Liew Kok Leong has acquired 33.73 million shares in the company on May 16, which is the same number of shares that Chin disposed of on the same day.

Following the acquisition — made through his private investment vehicle Ukay One Sdn Bhd — Liew has a direct holding of 2.66% stake or 6.06 million shares as well as 21.89% indirect stake or 49.79 million shares in Annum

Annum, formerly Cymao Holdings Bhd, was recently classified as a PN17 company after its new external auditor SBY Partners PLT expressed a disclaimer of opinion on its audited financial statements for the 18 months ended June 30, 2023, after it failed to obtain sufficient evidence to verify the group's assets.

The company later said it will hire a new audit firm to conduct a special audit of its revenue. Annum had hired SBY Partners in March this year after approaching 31 other auditors who turned down the job. Most had cited resource constraints, according to the company.

Trading in Annum shares had resumed on May 9 after being suspended for six months over the company's failing to submit its annual report on time.

Annum finished half a sen or 7.14% lower to 6.5 sen on Monday, giving the group a market capitalisation of RM14.79 million.