Notable Trade Halim Saad sells 23 mil Sumatec warrants

by **Cals** Mon 28 Dec 2015, 23:01

Notable Trade
Halim Saad sells 23 mil Sumatec warrants
By Kamarul Anwar / theedgemarkets.com | December 28, 2015 : 10:21 PM MYT

KUALA LUMPUR (Dec 28): Tan Sri Halim Saad, the 1990s high-flying corporate figure who resurfaced as Sumatec ([You must be registered and logged in to see this image.]Valuation: 1.50, Fundamental: 1.70) Corp Bhd’s largest shareholder via an asset injection in 2013, has been disposing the oil and gas company’s warrants SUMATEC-WB.
Once the largest warrant holder, a Bursa Malaysia filing today said Halim sold a total of 22.93 million SUMATEC-WB on Dec 17 and Dec 18 in the open market — leaving him with just 14.27 million or 2.52% of the outstanding warrants as of today. This compared with his holding of 27.16% or 154.16 million of the derivatives just some eight months ago.
Halim divested 9.5 million of those warrants at five sen each on Dec 17, and another 13.43 million the next day for 5.1 sen apiece.
This month alone, Halim sold a total of 58.501 million SUMATEC-WB, equivalent to 10.31% of the warrants issued.
The one-for-one SUMATEC-WB has been trading at a premium for some time now, with the mother share already valued far below the derivative’s strike price of 17.5 sen. Today, the warrants gained half a sen or 10% to close at 5.5 sen apiece — valuing it at a 10 sen or 76.92% premium to Sumatec’s mother share’s closing price today of 13 sen.
SUMATEC-WB still has a long shelf life, as it is only set to expire on Nov 13, 2018.
Although Sumatec’s net earnings for the first nine months of its fiscal year ending Dec 31, 2015 (9MFY15) improved by 44.39% year-on-year to RM38.23 million or 1.1 sen a share, it was not spared from the slowdown in the oil and gas industry, as there was a 35.48% drop in its latest quarter’s profit.
For 3QFY15, Sumatec reported a net profit of RM9.36 million versus last year’s RM14.51 million. Its revenue meanwhile, was slashed by 51.03% y-o-y to RM12.16 million, with the company saying foreign exchange gains helped to cushion the blow in its bottom line.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)