Yu continues to divest stake in HL Cap

by **Cals** Wed 27 Aug 2014, 23:22

Business & Markets 2014

Written by Liew Jia Teng of theedgemalaysia.com

Wednesday, 27 August 2014 21:23

KUALA LUMPUR (Aug 27): In the past five trading days, YNH Property Bhd major shareholder Datuk Dr Yu Kuan Chon has sold 6.038 million shares or a 2.446% stake in Hong Leong Capital Bhd (HL Cap) on the open market.

In a filing with Bursa Malaysia today, HL Cap said Yu now holds some 11.788 million shares or 4.774% direct stake in the company, down from 17.826 million shares or 7.22% stake as of Aug 19, 2014.

The announcement showed that Yu sold 1.935 million shares last Thursday (Aug 21), 1.255 million shares last Friday (Aug 22), followed by 843,000 shares this Monday (Aug 25) and 700,000 shares yesterday (Aug 26).

Today, Yu sold another 1.305 million shares in the open market.

To recap, Yu emerged as a substantial shareholder in HL Cap with 5.94% stake in early 2013, blocking tycoon Tan Sri Quek Leng Chan’s Hong Leong Financial Group Bhd from taking the company private at RM1.71 apiece, in February the same year.

Yu subsequently raised his stake in HL Cap to 8.96% stake by end-February last year.

However, he started to slowly divest his stake in HL Cap since March 2013, from 8.96% down to 4.774% as of yesterday.

HL Cap has yet to comply with the 25% public shareholding spread. Yesterday, it said it had applied for an extension of time ahead of the Aug 31 deadline, to comply with the requirement.

HL Cap's public shareholding spread stood at only 11.45% as at Aug 20, substantially lower than the required level of 25%.

Today, the counter rose 46 sen or 3.6% to RM13.36, with only 57,000 shares changing hands, making it the third-highest gainer on Bursa Malaysia.

Yu, 52, is also the chairman and executive director of YNH Property.

Interestingly on Monday, Yu continued to mop up shares in YNH Property by acquiring another 1.472 million shares or 0.36% stake in an off-market transaction.

Subsequently, he continued his buying spree, upping his stake in the property company to 32.53% or 133.395 million shares, as at Aug 27.