CEO Morning Brief

Tropicana's Danny Tan Emerges as Substantial Shareholder of Perak Transit

Publish date: Fri, 24 Feb 2023, 08:38 AM
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TheEdge CEO Morning Brief
Tan Sri Danny Tan Chee Sing

KUALA LUMPUR (Feb 23): Tropicana Corp Bhd’s executive vice chairman and major shareholder Tan Sri Danny Tan Chee Sing has emerged as Ipoh-based transport terminal and bus operator Perak Transit Bhd’s substantial shareholder after buying 17.39 million shares in the company.

Perak Transit said in a filing to Bursa Malaysia on Thursday (Feb 23) that the acquisition was done on Thursday but the transacted price was not disclosed.

In a back-of-the-envelope calculation, the block of shares would have cost Danny RM19.65 million based on Thursday’s closing price of RM1.13.

Following the acquisition, Danny now owns a total of 45.25 million shares or close to a 6.36% stake in the company.

Notably, Danny has spent RM12.46 million to acquire some 2.65 million shares in Chin Hin Group Bhd on Monday (Feb 20). The block was acquired from Tropicana’s indirect wholly-owned unit Desiran Realiti Sdn Bhd via a direct business transaction.

Danny, who is also a substantial shareholder of Tropicana, currently holds a 21.35% direct stake and a 33.76% indirect stake in the company.

Danny is not the first notable investor that was attracted to Perak Transit in recent weeks.

Three months ago, Agrochemical businessman Datuk Eddie Ong Choo Meng emerged as a substantial shareholder in Perak Transit after acquiring 13.73 million shares in the company — bringing its total interest in the company to 48.4 million shares or 6.92% stake at that time.

Eddie continued to accumulate shares in Perak Transit. As at Jan 30 this year, he owns 67.39 million shares or 9.48% in the company.

Perak Transit founder and managing director Datuk Seri Cheong Kong Fitt is the single largest shareholder of Perak Transit, with a direct stake of 17.14% and an indirect stake of 13.37% as at Feb 21.

Perak Transit operates two major terminals in Perak, with a combined net leasable area (NLA) of 338,071 sq ft. The group also operates more than 150 buses plying local routes.

Perak Transit’s maiden IPTT is the three-level Terminal Meru Raya, which has a NLA of 51,864 sq ft, and is Ipoh’s only express bus terminal. The group’s second terminal is the 11-level Kampar Putra Sentral, built at a cost of RM128 million, which commenced operations in September 2020. With a larger NLA of 286,207 sq ft, it houses a bus terminal and a commercial hub.

Perak Transit’s third terminal, Bidor Sentral, which will be built at a cost of RM135 million, commenced construction in FY21 and is slated for completion in FY23. The group’s fourth terminal is expected to be Terminal Tronoh, which it targets to commence construction in FY23.

Perak Transit's market capitalisation has grown about RM364 million over the past one year. The stock closed up 4.63% or five sen to RM1.13 on Thursday, giving the group a market capitalisation of RM815 million.

Source: TheEdge - 24 Feb 2023

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