Lityan MD sells stake and pockets RM3.9mil

PETALING JAYA: Lityan Holdings Bhd group managing director and chief executive officer Nor Badli Mohd Alias has disposed of his entire stake in the company, a filing on Wednesday with Bursa Malaysia showed.

The stake, comprising 1.25 million shares or 1.98% of the issued shares, was disposed of at RM3.13 per share at a total value of RM3.91mil on Tuesday.

Nor Badli had purchased the shares en bloc on Oct 27 at RM1 per share, a separate filing on Oct 30 showed.

According to a source familiar with the restructuring of Lityan, the stake acquired and then sold by Nor Badli was part of the company’s restructuring scheme.

“As part of the resolutions passed by the shareholders for the restructuring programme, the group managing director and the executive director were both allowed to acquire up to a maximum 1.25 million shares and 750,000 shares respectively in support of the placement exercise,” he told StarBiz.

He added that as part of the restructuring plan, 17.2 million shares were issued to creditors, of which 16.8 million were successfully placed out and issued on Oct 27 at a reference price of RM1 per share.

The stock had traded at 1.6 sen in June 2006 before it was suspended.

Lityan’s share price has been surging since it emerged from Practice Note 17 status and relisted on Oct 30.

The stock closed yesterday at RM2.65.

Sources said interest in the company was largely due to it being in a partnership with Huawei Technologies Co Ltd, and that the partnership had successfully bid for one component of Telekom Malaysia Bhd’s RM11.3bil high-speed broadband project.

Lityan was queried by Bursa, which issued an unusual market activity advisory on the counter on Tuesday, following which the shares tumbled 9.25% to RM2.45 on that day.

Trading in the company’s shares was halted less than half an hour before the market closed on the same day.

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