Datuk Seri Chiau Beng Teik, the founder of Chin Hin Group Bhd (KL), has reduced his stake in NCT Alliance Bhd (KL) after selling 59 million shares via an off-market transaction. The sale, which occurred on Monday, decreased his holding in NCT Alliance from 8.06% to 4.48%, effectively removing him as a substantial shareholder.
Sale Details and Impact
The disposal of the 3.58% stake or 59 million shares was reported to Bursa Malaysia in an exchange filing on Thursday. Although the exact transaction price was not disclosed, using NCT Alliance’s closing price of 49.5 sen on September 9, it is estimated that Chiau could have earned around RM29.65 million from the sale.
Following the transaction, Chiau’s total shareholding in NCT has dropped to 74.94 million shares or 4.48%, just under the 5% threshold required to be classified as a substantial shareholder under Bursa Malaysia regulations.
Background on Chiau’s Involvement in NCT
Chiau became a substantial shareholder of NCT Alliance in March 2022 when he subscribed to 75.41 million shares in a private placement at 32 sen per share, giving him a 5.61% stake in the construction and property development company.
NCT Alliance has seen strong growth in its share price, rising from 33 sen in mid-March to a high of 58.5 sen by April 8, 2024. As of Thursday, the stock closed at 48.5 sen, giving the company a market capitalisation of RM820 million. Year to date, NCT’s share price has gained 47%.
Additional Share Sales by Chiau’s Eldest Son
In a related move, Chiau’s eldest son, Chiau Haw Choon, also sold 64.86 million shares in NCT Alliance over the course of September 9 and September 11. Following these disposals, Haw Choon holds 88.72 million shares, equating to a 5.31% stake in the company. This indicates that, while both father and son have reduced their holdings, Haw Choon remains a substantial shareholder.
Conclusion
The reduction of the Chiau family’s holdings in NCT Alliance reflects strategic decisions that could impact both companies’ futures. As NCT continues its growth in the property development and construction sectors, the changes in shareholding could open the door for new opportunities and investments.
NCT Alliance remains a notable player in Malaysia’s property market, and with its strong performance in 2024, investors will be closely watching for any further developments following these significant share transactions.
