Just a day after it bought the shares at a massive discount, Multi-Purpose Holdings Bhd (KLSE: MPHB, stock-code 3859) has sold a big block of shares in rubber glove maker Latexx Partners Bhd (KLSE: LATEXX, stock-code 7064). The block involved comprises 32.3 per cent stake at a slightly higher price of RM21.68 million, giving it a gain of about RM320,000. The transaction was done by MPHB’s stockbroking unit, A.A. Anthony Securities Sdn Bhd, and the deals are said to be in the normal course of business.
According to the latest report from BusinessTimes, new shareholders have emerged in Latexx while an existing investor has raised his stake. Teong Lian Aik, based in Taiping, bought 14.85 per cent stake, or 28.5 million shares, yesterday through a direct business transaction.
Existing shareholder Low Bok Tek, who has about 5 per cent stake in Latexx, has raised his shareholding to over 20 per cent. He now has a direct and indirect stake of 38.94 million shares. Low is also the chairman of Gunung Capital Bhd, the company formerly known as Taiping Super Bhd. Last year, Gunung Capital sold off its coach building business, tour and travel business as well as its express bus business so that it can focus on its latex concentrates trading business. On Apr-20, Latexx Partners Berhad announced that Taiping Super Capital Sdn Bhd has an interest of 12.47 million shares representing 15.14% of shares in the Company.
Latexx is engaged in trading of healthcare products, manufacturing rubber gloves, property investment and marketing and distribution of rubber gloves. For the financial ended 2006, Latexx registered RM141 million in revenue compare to RM127 million in 2005. Profit however decreased to RM 3.937 million in 2006 compare to RM 4.28 million in 2005. Latexx is currently trading at price earning multiple (P/E/ ration) of 12.19
The question is how can MPHB bought the Latexx shares at the jaw-dropping price of 34 sen per share, a whopping 70% off the closing price of RM 1.24 per share on Wednesday, June-13 initially? Why would the seller (not identified) be generous enough to dump his/her shares to MPHB? Also, Citibank Bhd has emerged as a substantial shareholder of Latexx with 29.97 million shares or 15.4 per cent. The shares were issued to Citibank to settle debts owed by Latexx. So is something brewing within Latexx?
|
|
June 15th, 2007 by financetwitter
|
|
|
|
|
|
|
Comments
thanx anonymous for your input …
i guess the actual thing which is brewing is the 140 million invincible profit huh? shouldn’t this be investigated since transparency doesn’t allows such trading, or does it?
hmmm …
In short, someone is waiting for the opportunity to unload the shares and realise the profits. So chase Latexx at your own peril.
The 62.8 millions Latexx shares and 44.88 millions warrants were the shares issued to HSBC for debt settlement. HSBC had decided to take 30% hair cut over the par value of 50 sen to sell the shares en bloc.
Citibank will be selling their 29.97 million Latexx shares with 21.41 million warrant at RM 11.99 million. This work out to be RM0.40 per share with warrants given out as free. Hair cut taken by Citibank is 20%
OCBC will sell their 5.4 million Latexx shares with 3.88 mil warrants with 30% hair cut over the par value of 50 sen.
SCB will sell their 3.98 mil Latexx shares with 2.84 mil warrants with 35% hair cut.
All these are sold/to be sold to Low Bok tek and his nominees.
teong Lian aik is the brother in law of Low Bok Tek.
In short, at current Latexx share and warrant price someone has at least make a paper gain of over 140 millions.