Hong Kong-based Wang Tak Co Ltd increased its shareholding in Padiberas Nasional Bhd (Bernas) according to filings to Bursa Malaysia yesterday.
According to the announcement, Wang Tak acquired 460,500 Bernas shares between March 24 and 28. Although no price was given for the shares, Bernas’ stock was trading around RM1.80 during that time period.
Wang Tak, which has slowly been increasing its stake in Bernas since early last year, now holds a 25.05% stake in the rice concessionaire. Wang Tak is wholly owned by Hong Kong-listed Lee Hing Development Ltd, whose core business is in share investment and dealing.
Although Lee Hing has not yet disclosed its reasons for increasing its stake in Bernas, it its latest annual report for FY2006, Lee Hing stated that “the group believes that this investment (in Bernas) will generate considerable income in the future”.
Lee Hing has still not offered any further elaboration on its statement.
Although not a name known locally, Lee Hing holds close ties with the family of IGB Corp Bhd patriarch Datuk Tan Chin Nam. According to Lee Hing’s 2006 annual report, IGB’s executive director Tan Boon Seng also serves as Lee Hing’s chairman and managing director.
Lee Hing also holds an investment in Gold IS Bhd, another company linked to the Tan family. According to Lee Hing’s annual report the investment in Gold IS is worth about HK$66.3 million (RM27.15 million).
However, its investment in Bernas appears to be its biggest, worth some HK$295.9 million according to the company.
Although some see Bernas’ share price as undervalued, the company is not without its issues. Bernas’ margins have been suffering due to rice-smuggling activities and rising foreign rice prices, which the company had been unable to pass on to its consumers.
Bernas is also unlikely to receive a price hike any time soon as the government has come out to say this week that it has no plans to increase the price of rice despite the current frenzy among Asian governments to secure rice stocks.
It was reported that global rice stocks are now at their lowest levels since the mid-1970s. The international price of rice has also doubled to about US$760 (RM2,432) per tonne since January due to strong demand from the Middle East, Asia and Africa.
In the latter half of 2007, speculation had been rife that Bernas’ biggest shareholder Tan Sri Syed Mokhtar Al-Bukhary was taking the company private. Syed Mokhtar holds about 31% of Bernas.
However, the rumours have been consistently shot down by Bernas’ board of directors.
Other substantial shareholders of Bernas include Lembaga Tabung Haji, which holds a 6.06% stake.
According to the announcement, Wang Tak acquired 460,500 Bernas shares between March 24 and 28. Although no price was given for the shares, Bernas’ stock was trading around RM1.80 during that time period.
Wang Tak, which has slowly been increasing its stake in Bernas since early last year, now holds a 25.05% stake in the rice concessionaire. Wang Tak is wholly owned by Hong Kong-listed Lee Hing Development Ltd, whose core business is in share investment and dealing.
Although Lee Hing has not yet disclosed its reasons for increasing its stake in Bernas, it its latest annual report for FY2006, Lee Hing stated that “the group believes that this investment (in Bernas) will generate considerable income in the future”.
Lee Hing has still not offered any further elaboration on its statement.
Although not a name known locally, Lee Hing holds close ties with the family of IGB Corp Bhd patriarch Datuk Tan Chin Nam. According to Lee Hing’s 2006 annual report, IGB’s executive director Tan Boon Seng also serves as Lee Hing’s chairman and managing director.
Lee Hing also holds an investment in Gold IS Bhd, another company linked to the Tan family. According to Lee Hing’s annual report the investment in Gold IS is worth about HK$66.3 million (RM27.15 million).
However, its investment in Bernas appears to be its biggest, worth some HK$295.9 million according to the company.
Although some see Bernas’ share price as undervalued, the company is not without its issues. Bernas’ margins have been suffering due to rice-smuggling activities and rising foreign rice prices, which the company had been unable to pass on to its consumers.
Bernas is also unlikely to receive a price hike any time soon as the government has come out to say this week that it has no plans to increase the price of rice despite the current frenzy among Asian governments to secure rice stocks.
It was reported that global rice stocks are now at their lowest levels since the mid-1970s. The international price of rice has also doubled to about US$760 (RM2,432) per tonne since January due to strong demand from the Middle East, Asia and Africa.
In the latter half of 2007, speculation had been rife that Bernas’ biggest shareholder Tan Sri Syed Mokhtar Al-Bukhary was taking the company private. Syed Mokhtar holds about 31% of Bernas.
However, the rumours have been consistently shot down by Bernas’ board of directors.
Other substantial shareholders of Bernas include Lembaga Tabung Haji, which holds a 6.06% stake.
