M-Mode to get new shareholder, business revamp

PETALING JAYA: There was an off-market transaction of 61.068 million shares or a 37.5% stake of M-Mode Bhd at the price of 30 sen a share yesterday, suggesting that its single largest shareholder and group managing director Datuk Lim Thean Keong is exiting the company.

Lim is the largest shareholder of the company with a 37.27% stake or 60.65 million shares. The off market transaction price of 30 sen, represented a 15.5% discount to yesterday’s closing price of 35.5 sen.

On Tuesday, the stock closed 1.5 sen higher to 35.5 sen on volume of 4.04 million shares. On a year-to-date basis, this stock is up 61.36%.

It appears that a new shareholder is entering the mobile content and data application company, and a diversification is also in the pipeline.

From its Bursa Malaysia filing last week, that new business direction is probably in property and construction.

Last Friday, M-Mode announced that it was teaming up with Rexallent Construction Sdn Bhd to undertake the remaining construction of the H2O mixed development in Ara Damansara, Selangor for RM180mil.

In a filing with Bursa, M-Mode said its wholly-owned subsidiary E&J Builders Sdn Bhd had entered into an agreement with Rexallent Construction to form an exclusive joint venture (JV) for the sole purpose of undertaking and completing the project.

Under the JV, E&J Builders will be responsible for the overall project management using all its technical expertise and resources.

The project is owned by Epoch Property Sdn Bhd and managed by Titijaya PMC Sdn Bhd, both of which are wholly-owned subsidiaries of Titijaya Land Bhd.

On May 22, 2015, Rexallent Construction was appointed by Titijaya PMC as its main contractor for the project for RM327.05mil.

M-Mode said the proposed project would allow it to diversify its income stream and avoid the over-reliance of providing mobile contents and data application services.

On March 20, M-Mode also announced the appointment of civil engineer Ong Chee Koen, 60, as executive director.