PELABURAN Mara Bhd (PMB), the strategic investment and asset management arm of Majlis Amanah Rakyat (Mara), may further raise its stake in Sanichi Technology Bhd, a precision moulds maker.

Bursa Malaysia filings showed that PMB acquired 18 million shares, or 5.14 per cent, in Sanichi on Tuesday. It bought the shares from the open market at an estimated 11.5 sen apiece.

Sources said PMB wants to grow its investment portfolio in the equity space as part of efforts to reap returns.

PMB currently holds equity interest in numerous entities, within various sectors.

In April, it bought 233 million shares, or a 26.83 per cent, in container shipping company PDZ Holdings Bhd for RM41 million.

Sanichi recently received shareholders’ approval to diversify its business into the property development and property investment sector with the acquisition of a 8,672 sq m plot of freehold land in Malacca for RM7.7 million.

Once the acquisition is completed, Sanichi will venture into property development and property investment, thus reducing its dependence on current business.

The diversification is expected to benefit its shareholders, as Sanichi anticipates that its activities in the property development and property investment sector will contribute more than 25 per cent to its future net profits.

On August 15, Sanichi announced a renounceable rights issue of up to 644.89 million new shares of 10 sen each, together with up to 429.93 million free detachable warrants at an issue price of 10 sen per rights share, on the basis of three rights shares, together with two warrants for every existing Sanichi share held at 5pm tomorrow.

This is based on a minimum subscription level of 90 million rights shares, together with 60 million warrants.

“It is expected that PMB will subscribe to Sanichi’s rights issue share price fixed at 10 sen, which will lead to PMB receiving two free warrants from every three rights issue shares,” sources said.


Source: Business Times, 28 Aug 2014 by Sharen Kaur