Mara unit buys 5% stake in Sanichi Technology

KUALA LUMPUR: Pelaburan Mara Bhd (PMB), the strategic investment and asset management arm of Majlis Amanah Rakyat, has bought a 5.14% stake or 18 million shares in Sanichi Technology Bhd on Tuesday.

The 100% government-owned company purchased the shares in Sanichi from the open market, at an estimated 11.5 sen per share.

In April, PMB bought 233 million shares (26.83% stake) in container shipping company PDZ Holdings Bhd for RM41mil.

On Aug 15, Sanichi announced a renounceable rights issue of up to 644,891,820 new ordinary shares of 10 sen each, together with up to 429,927,880 free detachable waarants 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 on Aug 29.

This is based on a minimum subscription level of 90,000,000 rights shares together with 60,000,000 warrants.

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

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 RM7.7mil.

The company is principally an investment holding company and a provider of management services while its subsidiaries are mainly involved in its current core business of designing and fabrication of precision moulds and tooling for use in the automobile and electrical industry.

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