PETALING JAYA: CN Asia Corp Bhd has seen the emergence of a new substantial shareholder after Yee Wei Meng purchased a 7.79% stake in the company.
Yee, who was recently appointed as the group managing director of Acoustech Bhd, acquired 11.76 million ordinary shares in CN Asia on Wednesday.
He is believed to be the largest shareholder of the group currently.
Based on CN Asia’s analysis of shareholdings as at March 23 in its annual report, the top two shareholders then were Yi-Lai Marketing Sdn Bhd and Yip Chun Mei, with a stake of 4.92% and 4.81% respectively.
Yee was the former group managing director of GIIB Holdings Bhd and has since been redesignated as its non-independent non-executive director on Feb 17.
He also sits on the board of Fontern International Group and Transgrow Group.
On Wednesday, CN Asia, which manufactures tanks and vessels, also purchased the entire stake of Southborn Capital Sdn Bhd for RM160, 000
Southborn Capital is engaged in the business of money lending service and owns a money lender’s license that is valid until Dec 3, 2022.
CN Asia said the strategic rationale for the acquisition was to expand the revenue stream and earning base of CN Asia Group through the money lending business.
“It is expected to contribute positively to CN Asia after considering the economic situation, the relatively longer processing periods and stricter lending requirements imposed by banks and financial institutions as well as demand financing from individuals and businesses from licensed moneylenders for various reasons such as personal financing, business start-up and expansion, project financing and others.
“Certain segments of borrowers may not have access to credit facilities from banks and financial institutions due to relatively stricter lending requirements, ” it said in its filing with Bursa Malaysia.
The board of directors believed that the current challenging economic environment in view of the recent Covid-19 outbreak and the outlook for the loan market in Malaysia, CN Asia will have opportunities to grow its money lending business.
CN Asia added four sen or 6.45%to 66 sen yesterday with a total of 25.51 million shares traded.