KUCHING: Sealink International Bhd’s (Sealink) controlling shareholder, the Yong family, has sold 150 million shares or 30 percent of equity interest in the company.
The disposal via their family vehicle Sealink Holdings Sdn Bhd (SHSB) was transacted in crossing deals at 36.5 sen per share for RM54.75 million on Oct 10.
The transacted price was 18.89 percent below Sealink’s closing price of 45 sen on that day.
With the disposal, SHSB has reduced its stake in the company to 109,080,800 shares or 21.82 percent, Sealink said in a filing with Bursa Malaysia.
Although there was no mention of the buyer, a separate filing by Sealink revealed that businessman Datuk Awang Daud Awang Putera acquired 150 million Sealink shares in off market acquisition on the same day.
Awang Daud, 58, was Serba Dinamik Holdings Bhd deputy group managing director before he was redesignated as non-independent non-executive director on Oct 4, 2019. He joined the company as a director in 1994.
Awang Daud has of late reduced his shareholding in Serba Dinamik to 142,012,200 shares or 9.671 percent from 157,012,200 shares or 10.962 percent as at April 1, 2019.
His latest disposals of 4.5 million Serba Dinamik shares were on Oct 4 and Oct 10.
With the acquisition, Awang Daud has emerged as the second largest shareholder in Miri-based Sealink, which is involved in ship building, chartering of marine vessels and ship repair business.
Sealink has a fleet of 33 vessels, providing a broad range of services to the marine sector, including the oil & gas industry, to both domestic and international clients.
The company has constructed 68 vessels (including fabrication of two work barges), such as offshore supply vessels. It has diversified into the construction of harbour tugs and other non-oil and gas vessels, according to its chief executive officer and managing director Yong Kiam Sam in Sealink’s 2018 annual report.
Besides his indirect shareholding in SHSB, Kiam Sam has direct stake of 67,382,399 shares or 13.48 percent in Sealink.
His father Yong Foh Choi, who retired as company managing director in May 2018, has direct equity interest of 45,716,800 shares or 9.14 percent in Sealink, which made its debut on Bursa Malaysia on July 29, 2008.
There is no other substantial shareholders in Sealink, which has suffered losses in recent years following the plunge of global oil prices and slowdown of the oil & gas industry.
In the financial year ended Dec 31, 2018 (FY2018), Sealink narrowed group net loss to RM19.8 million on revenue of RM71.6 million from loss of RM49.7 million on revenue of RM75.2 million in FY2017. In FY2016, Sealink suffered group net loss of RM56.7 million on turnover of RM122 million.
The dismal performance of the company has affected Sealink’s share price which plunged to 52-week low of 9 sen. However, the stock saw a strong rally since early June that pushed its price to high of 49.5 sen. Sealink closed at 44.5 sen with market capitalisation of RM222.5 million on Monday.
According to Kiam Sam, Sealink group has, despite the challenges faced, secured various contracts and received tenders directly from national and international oil majors in Malaysia, through its joint-venture company.
“Global capex (capital expenditure) budgets are expected to accelerate in 2019, albeit from a low base. Already, we are seeing signs of recovery along the value chain for global offshore activities.
“Oil and gas service providers with regional and global footprints are well poised to capitalise on this trend.
“With oil price recovering, we believe that the demand for oil services will come back first for the shallow water segments as these typically have a lower breakeven cost. This will be beneficial for the group which has these vessel types,” he said in the latest company annual report.
