As expected, SRC lost RM378mil in market capitalisation yesterday, as investors reacted to news that a controlling stake in the oil refinery would be sold at a huge discount to its share price.
KUALA LUMPUR: The Employees Provident Fund disposed of one million shares of Shell Refining Company (Federation of Malaya) Bhd (SRC) on Feb 4 after news that its parent was selling the 51% stake at a steep discount to the market price.
Filings to Bursa Malaysia showed after the sale of the shares, the EPF’s shareholding was reduced to 39.73 million shares or 13.24% stake.
The EPF had also disposed of one million shares on Feb 3.
At midday on Friday, its share price was down 20 sen to RM3.15, which was the lowest since March 2002.
Shell Refining’s share price has fallen from a high of RM6.03 on Jan 12 this year to RM4.94 on Jan 29.
It skidded to 3.68 when trading resumed after global oil giant Royal Dutch Shell announced it had signed a deal to sell its entire 51% stake, or 153 million shares, in SRC to Malaysia Hengyuan International Ltd (MHIL).
The sale for a total cash consideration of US$66.3mil represented an offer price of 43 US cents per share.
The value of the deal was equivalent to RM274.98mil, or RM1.80 per share.
It represented a huge discount of 63.6% to SRC’s last traded share price of RM4.94 on Jan 29 before the announcement on the deal was made.
But the discount would be narrower at 6.7% against SRC’s net asset value of RM1.93 a share as of end-September 2015.
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