Heng Huat Resources’ MD no longer a substantial shareholder of Ivory Properties

• A bourse filing showed that Datuk H’ng Choon Seng disposed of 80 million shares via off market transaction on Tuesday (Oct 11), representing a 16.32% stake in the Penang-based property developer.

KUALA LUMPUR (Oct 11): Heng Huat Resources Group Bhd’s managing director Datuk H’ng Choon Seng has ceased to be a substantial shareholder of Ivory Properties Bhd.

A bourse filing showed that H’ng disposed of 80 million shares via off market transaction on Tuesday (Oct 11), representing a 16.32% stake in the Penang-based property developer.

To recap, H’ng emerged as the substantial shareholder of Ivory Properties on Sept 2, after acquiring 73.32 million shares or a 14.96% direct stake in the off market on Aug 30.

Subsequently, he mopped up 6.68 million shares on Sept 1, bringing his stake to 16.32%.

On a separate note, it is worth noting that H’ng, together with his partner Goh Boon Leong, had on Sept 29 jointly launched a mandatory takeover offer of Heng Huat Resources at 37.7 sen a share and 29.7 sen per warrant.

The duo, however, intend to maintain the listing status of the ACE Market-listed biomass material manufacturer.

Back to Ivory Properties, it is believed that NLY Development Sdn Bhd is the buyer of that block of 80 million shares being offloaded by H’ng.

Filing with Bursa Malaysia showed that NLY bought 80 million shares in the off market, raising its stake to 19.08% — making it the second largest shareholder after Low Eng Hock (27.25%), who is the chief executive officer of Ivory Properties.

Other notable shareholders in Ivory Properties include Ooi Choi Kiat with a 6.15% stake, Khoo Siew Siew with a 5.76% stake, Lee Foo San with a 3.63% stake, Bloomberg data showed.

Ivory Properties has been loss making since the financial year ended March 31, 2020 (FY20). Its net loss narrowed to RM79.51 million in FY22, from RM84.22 million in FY21.

In August, Ivory Properties slipped into Practice Note 17 status, after its external auditor Messrs KPMG PLT flagged material uncertainties about the company’s ability to continue as a going concern.

According to KPMG, Ivory Properties reported a net loss of RM79.51 million during FY22, while the group’s liabilities exceeded its current assets by RM60.22 million.

Ivory Properties’ cash and bank balances stood at RM1.67 million as at March 31, 2022, while the group recorded negative operating cash flows of RM8.9 million for FY22.

KPMG said that during the current financial year, Ivory had experienced difficulties in obtaining financing for its project developments and property acquisitions, termination of certain agreements and forfeiture of deposits.

The group also missed the repayment of interest and principal payments that amounted to RM1.98 million for certain loans and borrowings, of which the outstanding amount totalled RM49.73 million.

Ivory Properties’ share price, which has tumbled 46.15% year-to-date, closed down half a sen or 6.7% at seven sen on Tuesday, with some 399,700 shares changing hands.

At its closing price, the group is valued at RM32.16 million.