Insider Moves: Rexit Bhd, Excel Force MSC Bhd, Cuscapi Bhd, Binasat Communications Bhd, Sarawak Cable Bhd
This article first appeared in Capital, The Edge Malaysia Weekly on January 29, 2024 – February 4, 2024
Notable filings
On Jan 19, Rexit Bhd saw a change in its largest shareholder after Rexit Venture Sdn Bhd and Global Hartabumi Sdn Bhd sold 92.05 million shares in total, representing 53.14% of the share base of the software-as-a-service (SaaS) group, to Datuk Seow Gim Shen.
Both Rexit Venture and Global Hartabumi are controlled by Datuk Abdul Murad Khalid, who was assistant governor of Bank Negara Malaysia between 1994 and 1999. A non-independent non-executive director of Rexit, he has been on the board since 2007.
Based on the mandatory takeover offer extended by Seow for all the shares he does not hold in Rexit, Murad’s shares were acquired at 85 sen each. At that level, the offer price is a 3.36% premium to the share price of Rexit over the one-year period to Jan 16.
Seow serves as chairman of the board of Titan Pharmaceuticals Inc, which is listed on the Nasdaq stock market. He is also chairman of Prima Niaga Group Sdn Bhd, Zchwantech Sdn Bhd and Blackwolf Technology Sdn Bhd, companies involved in software services.
Rexit’s share price hit its 52-week high of RM1.20 on Jan 18, a day after Murad’s shares were acquired by Seow. The counter was trading at 98 sen on Jan 24, which is 15.3% higher than the price offered by Seow to take over the remaining shares.
Elsewhere, Hillcove Sdn Bhd ceased to be a substantial shareholder of Excel Force MSC Bhd after it disposed of 24.7 million shares, or a 4.42% stake, in the financial services business solutions provider on Jan 16.
As at Jan 24, however, no filings were made by Excel Force about the identity of the purchaser, possibly because the new shareholder’s stake may still be below the 5% threshold for public disclosure. Following the disposal, Hillcove now has 4.15 million shares, or a 0.74% stake, in the group.
The disposal came less than two months after Hillcove emerged as a substantial shareholder of Excel Force after having acquired 28.85 million shares, or a 5.16% stake, via a direct business transaction in December 2023.
Excel Force’s share price stood at 38 sen on Jan 24, down 6.1% from a year ago. The group’s largest shareholder is Wong Thean Soon, co-founder of MyEG Services Bhd, with a 32.96% stake — an 18.23% direct stake and a 14.73% stake via his vehicle Asia Internet Holdings Sdn Bhd.
Over at Cuscapi Bhd, Ultimate Quality Success Sdn Bhd ceased being a substantial shareholder on Jan 16, following the disposal of 55 million shares in the SaaS and point-of-sale service provider through a direct business transaction.
Ultimate Quality Success is controlled by Datuk Jayakumar Panneer Selvam, executive chairman of Cuscapi. Following the disposal, Jayakumar’s stake in the group stood at 2.2% on Jan 17.
As at Jan 24, Cuscapi had made no announcement about the identity of the buyer of the block of shares, which represents 5.82% of the group’s share base.
MyEG’s Wong is currently the largest shareholder of Cuscapi, with a 30.8% stake. Hillcove is also a substantial shareholder of Cuscapi, with 6.95% equity interest.
Notable movements
During the week of Jan 15 to 19, Binasat Communications Bhd’s share price fell 10% to 27 sen. The counter has been trending lower since reaching its 52-week high of 46 sen on Sept 19, 2023.
On Jan 17, Binasat announced that Dynamic Paradigm Sdn Bhd, a company controlled by Nik Abdul Hakim Abdul Razak and Mohd Solehuddin Yahya, had ceased to be a substantial shareholder of the group after disposing of 6.93 million shares, or 1.78% of the group’s share base.
Binasat’s largest shareholder is Hextar Capital Bhd (formerly known as Opcom Holdings Bhd), with a 24.78% stake, held through Opcom VC Sdn Bhd.
Meanwhile, Sarawak Cable Bhd’s share price fell 33.33% during the week under review to 22 sen. The counter had started to rise again in recent days, however, inching up to 25 sen apiece as at Jan 24.
On Jan 12, Datuk Seri Mahmud Abu Bekir Taib disposed of five million shares, or 1.25% of the group’s share base. After the disposal, Mahmud’s shareholding in the group stood at 12.1% directly and 6.54% through Central Paragon Sdn Bhd.
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