By Jose Barrock
Last Friday almost 9% or 18.56 million shares in Pahang-based Pasdec Holdings Bhd crossed in off market trades at 30 sen a piece, which marked a discount of 28.5% to the trading price last Friday of 42 sen.
While no announcements have been made as yet to the Bursa Malaysia, long time shareholder in Pasdec, Ciri Ehsan Sdn Bhd as at end April last year, had 8.96% or 18.56 million shares in the company.
Speculation is that Ciri Ehsan has exited the company. Ciri Ehsan has been a shareholder in Pasdec since the 90’s.
A check on the Companies Commission website indicates that Ciri Ehsan is wholly owned by Zenith Aim Sdn Bhd, a company linked to Pahang-based businessman Tew Kim Thin.
Tew controls Zenith Aim both in his own name and via his vehicle Major Merchants Sdn Bhd, where his family members also have some equity.
Tew is known in Pahang as the chairman of the swanky Zenith Hotel in Kuantan, and controls construction outfit Jasa Imani Sdn Bhd.
Did Tew sell out?
It is still not clear who Tew sold the block in Pasdec to, or if he flipped it to a related company which he controls as well, which might be the case considering the low price the shares were crossed at.
But then again, Pasdec is not really one of those companies which is often in the limelight, or known to be an investor favourite.
From its 2012 annual report the company suffered losses in two out of the last five financial years (2008 to 2012), and two of the profitable years were paltry, less than RM5 million in profit after tax.
The year just ended however is likely to be a profitable one. For its nine months ended September last year, Pasdec registered net profits of RM32.6 million from RM101.4 million in revenue. Earnings per share or EPS however stood at 15.8 sen for the nine months.
However it is noteworthy that the bulk of the earnings for the nine month period came in the third quarter of FY2013. In the third quarter ended Sept 30, 2013, Pasdec recorded profit before tax of RM29.6 million in stark contrast with a loss of close to RM300,000 in the immediate preceding quarter.
A chunk of the profits in the third quarter were attributable to a gain on disposal of shares of RM35.2 million, from the company selling its 30.33 million shares in YTL Corp Bhd for some RM51.5 million or about RM1.70 per share, marking a gain of some RM35 million.
While the company’s financials have not exactly been sterling, Pasdec’s net asset per share as at end September stood at RM1.75, with many choice parcels of land and buildings in Pahang some of which have not been revalued since 1996.
So could Tew’s block have generated sufficient interest, for a better price maybe, or did the long-time shareholder let go of the shares to a state linked entity?
Quek exited mid last year
Quek Leng Chan
At present Perbadanan Kemajuan Negeri Pahang, the state’s economic development corporation, is the largest shareholder with a 51.6% stake.
Interestingly enough mid last year another shareholder exited, namely billionaire tycoon Quek Leng Chan of Hong Leong fame who ceased to be a substantial shareholder.
Quek had been a substantial shareholder of Pasdec since July 2003, when his company Pembinaan Sri Jati Sdn Bhd, acquired Pasdec’s Treacher Development Sdn Bhd for shares, and held a 12.6% equity interest in Pasdec, but quickly reduced his shareholding to some 7.6%. Then in March last year he started selling his shares and ceased to be a substantial shareholder mid last year.
It is not clear if anyone accumulated or mopped up Quek’s shares or if Pasdec has any new interesting shareholders.
Till the company’s annual is released in either May or June, the movements at Pasdec may be worth looking at.
Pasdec ended trading today at 44 sen, down half a sen.
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