Halim Saad’s associate to buy 10% stake in PDZ, say sources

by **Cals** Thu 21 Aug 2014, 12:55

Business & Markets 2014

Written by Madiha Fuad of theedgemalaysia.com

Thursday, 21 August 2014 09:52

KUALA LUMPUR: Container shipping turned oil and gas (O&G) player PDZ Holdings Bhd is expected to see tycoon Tan Sri Halim Saad’s associate acquire a stake of more than 10%, said sources.
According to sources, the associate, with executive director James Chan (pic) from Halim’s Kenmakmur Holdings Sdn Bhd touted as one of the likeliest, will be buying above 10% shareholding in PDZ from Pelaburan Mara Bhd (PMB).
Sources said the deal between the new party and PMB is expected to take place today or tomorrow.
“The new shareholder is expected to inject an upstream producing asset into PDZ,” a source told The Edge Financial Daily, adding that it is not a Malaysian asset.
The emergence of another major shareholder will see PMB and the new party jointly owning PDZ as an O&G vehicle. PMB is expected to remain as the largest shareholder.
PMB, who bought a 26.83% controlling stake in PDZ from tycoon Tan Sri Robert Tan Hua Choon only three months ago for RM41 million, had increased its stake to 29.54% as at Aug 14. It is now selling nearly half of its shareholding.
With the shares closing at 29.5 sen yesterday, PMB sits on a profit pile of RM29.6 million as the majority of the shares were acquired at 18 sen apiece.
Back of the envelope calculations showed that the sale of some 10% to the new party will soon see PMB pocketing about RM7.6 million or more.
PMB has been paring down its stake in PDZ. On Aug 11, it sold five million shares at 22.5 sen per share in an off-market deal.
Interestingly, PDZ’s shares, which had jumped 114.3% to 37.5 sen on Aug 19 from 17 sen in just 10 days, saw a sharp drop yesterday. The stock plunged 21.3% to close at 29.5 sen, giving it a market capitalisation of RM256.45 million.

This article first appeared in The Edge Financial Daily, on August 21, 2014.