Business News

Tan increases stake in Flonic

Wednesday, 24 July 2013

PETALING JAYA: The granddaughter of the late Tan Sri Tan Yuet Foh, the founder of Tan Chong Motors Holdings Bhd, has emerged as a substantial shareholder in manufacturer of critical and precision cleaning systems Flonic Hi-Tech Bhd, suggesting that some exciting changes may be in store for the firm.

Tan Siew Ching, 43, had previously already held a small stake in the firm.

She had on July 15 bought 10 million shares at 10 sen each and another 7 million shares at 10.5 sen each a day later, increasing her stake in the firm to a substantial 6.72% , according to a filing with Bursa Malaysia.

Notably, Tan’s husband, Chua Wye Man, is the executive chairman of Flonic. He has a 1.86% stake in the company.

Chua, much like Tan, is also linked to the family of a high-profile automotive firm – namely the Cycle & Carriage Bintang group which is a dealer for the Mercedes Benz brand in Malaysia.

He was appointed a director of Flonic in June last year and re-designated to executive director and executive chairman later in the year.

Industry observers believe that Flonic could potentially see more high-profile shareholders coming on board with Tan’s stake increase paving the way.

Currently, the largest shareholders are one Ong Say Kiat with a 8.60% stake, followed by Novatige Sdn Bhd, which holds a 7.72% stake.

Tan is the third largest shareholder, according to Bloomberg data.

Recall in February, Tan emerged as a substantial shareholder in plastics manufacturer IRM Group Bhd. At last look, she has a 13.83% stake in the firm.

In January, Flonic proposed to buy a 30% stake in Jiwa Holdings Sdn Bhd, a group mainly involved in interior design and furnishing projects – for RM3.75mil to be settled in cash.

In its announcement to Bursa, it said the future earnings from the Jiwa Group were supported by a profit guarantee as well as the positive prospects of its (Jiwa’s) business comprising project management, interior fit out, manufacturing and trading in wood furniture. “As such, the demand for its services and products is expected to grow steadily in line with the growth of the interior design industry in Malaysia.”

Shares in loss-making Flonic finished up 0.5 sen to 11.5 sen at yesterday’s close.

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