Jaikishan buys 5.06% stake in Envair for RM1.32mil

PETALING JAYA: Controversial “carpet man” Deepak Jaikishan has emerged as a substantial shareholder in Envair Holdings Bhd, buying a 5.06% direct stake in the loss-making manufacturer of air and water filters for RM1.32mil.

Envair told Bursa Malaysia that the 39-year old supplier of carpets recently in the news for his link to controversial statutory declarations had bought the six million shares at 22 sen apiece last Friday.

Envair last saw a Chinese national, Jiang Chuan Yi, selling off his entire stake of 6.75% in the company less than a month after acquiring it on Nov 1.

The sale was done via open market transactions at an undisclosed price.

Envair's stock had surged in early October from 11 sen to 40 sen in early November, just before the company unveiled its plans to move into the oil and gas industry by supplying two million barrels of light crude oil monthly for 60 months to a China-based company, An Hong Shenzhen.

The deal surprised analysts who questioned then how a little-known loss-making company could secure such a huge deal from a Chinese party.

Envair shares ended 2.5 sen higher to 31.5 sen yesterday.

The rapid exit of Jiang remains a concern in light of Jaikishan's recent purchase of the 5.06% block in Envair.

Previously, Sanichi Technology Bhd and DVM Technology Bhd had also seen certain investors buying into and briefly selling out of these companies, raising questions about their motives.

In Sanichi's case, the counter hit limit-up on Aug 2, gaining 66% to 7.5 sen on exceptionally heavy trading volume.

A day later, it was reported that Datuk Md Wira Dani Abdul Daim, son of former finance minister Tun Daim Zainuddin, was a new substantial shareholder of the loss-making design and fabrication of precision mould and tooling firm with a 6.1% stake.

On the same day, Sanichi shares surged to 9.5 sen before hitting 10.5 sen the following day.

On Aug 5, filings with the stock exchange showed that Wira had sold all his shares at an undisclosed price.

Shareholders emerging and selling out quickly had also transpired at Kenmark Industrial Co (M) Bhd last year. The company created headlines after its key management and Taiwanese executive directors went missing, leaving the company in a fix.

A week later, former director and tycoon Datuk Ishak Ismail, emerged as a substantial shareholder in the firm but he sold off his entire stake within two weeks for a profit.

The Securities Commission has since commenced civil proceedings against Ishak.