by Ronnie Teo and Sharon Kong, bizhive@theborneopost.com. Posted on November 21, 2013, Thursday

ACTIVE POST BUDGET: Photo shows Kung (left) and Ngu. Instacom was one of the more active counters post-Budget 2014 due to interest from RM1.5 billion worth of towers planned to be built under the universal service providers fund. – Bernama photo

KUCHING: Instacom Group Bhd (Instacom) chief executive officer Anne Kung has clarified that the sales of her warrants in the group was an act of cashing out on the active markets immediately after Budget 2014 announcements.

This was a purely personal decision and not one pertaining to the company.

In responding to queries from The Borneo Post, Kung said, “My sale was only after the Budget announcement because there was a certain spike in the interest in the company due to positive sentiments from the Budget 2014 announcement.

“Prior to this, I have never taken profit before. As such, I thought it was an opportune time for me to pocket some money,” she noted, adding that before October 8, all their shares were under moratorium.

Kung was responding to speculations regarding her and fellow Instacom director Thomas Ngu who have sold off all their warrants, collectively worth 102 million units, within the past month. Ngu has also sold a portion of his shares in Instacom.

These disposals had caused speculation among other investors who worried on the current financial status of the company.

Instacom was one of the more active counters due to interest arising from Budget 2014, particularly the announcment on RM1.5 billion worth of towers planned to be built under the universal service providers fund.

“We are of course, one of the country’s biggest tower builders, constructing and contracting companies. I have not sold any shares, only purely warrants,” she affirmed. “I am very much still managing the company and the plans that we have set up for the company are still very much intact.”

Instacom’s shares closed lower on Bursa Malaysia yesterday, dropping 5.56 per cent to close at 0.255 sen. Also, RHB Research Institute Sdn Bhd had downgraded Instacom’s ratings to neutral on Tuesday, turning cautious on the group based on this move.

“I’m not sure why everyone is so concerned because it just so happened that we were perceived to be a beneficiary of the budget,” Kung added.

“Out of the blue was the announcement of the towers, which I am definitely looking forward to. But that is for 2014. We are still waiting to see the details on this.”

Regarding Ngu, Kung noted that his warrant sale was his own investment criteria.

“He is also very much a keen member of my team. He is the one that started Instacom so I don’t think he will be leaving anytime soon,” she opined.

“Ngu may have other investments in mind and I have absolute confidence in the company and have not sold any shares in the company. I am still holding on to my shares.”