Mitraland founder Chuah Theong Yee emerges as substantial shareholder of Eonmetall

• A back-of-an-envelope calculation, based on Eonmetall's closing price of 72 sen on Oct 31, indicated that the block would have cost Chuah RM14.53 million.

KUALA LUMPUR (Nov 3): Mitraland Group founder and chief executive officer Chuah Theong Yee (pictured) has emerged as a new substantial shareholder of Eonmetall Group Bhd.

In a Bursa Malaysia filing on Thursday (Nov 3), Eonmetall said Chuah on Oct 31 acquired 20.18 million shares in an off-market transaction, representing a 7.3% stake in the company.

He is deemed to have acquired the block of shares from EMT Systems Sdn Bhd (formerly known as E Metall Systems Sdn Bhd), which is co-owned by Goh Ting Hiong, Puah Weng Khim, Grand East Metal (Kulim) Sdn Bhd and Wong Chin Wah.

A back-of-an-envelope calculation, based on Eonmetall's closing price of 72 sen on Oct 31, indicated that the block would have cost Chuah RM14.53 million.

Penang-based Eonmetall manufactures steel storage and racking systems, and metalwork and industrial process machinery and equipment.

In August, the group proposed to dispose of its 51% stake in glove company Lienteh Technology Bhd for RM35.7 million, amid the tough business environment in the glove industry.

The disposal plan was made after demand for gloves and price pressure caused some of Lienteh's customers to cancel current purchase contracts or negotiate new ones, as well as reduce orders.

Meanwhile, Eonmetall managing director and CEO Yeoh Cheng Chye told The Edge in July that demand for steel racking systems was expected to be robust on the back of soaring e-commerce growth propelled by the Covid-19 pandemic.

Eonmetall exports its products to various countries in Asia, Asean, Asia-Pacific, Middle East, North Africa, and Europe.

Eonmetall's share price finished two sen or 2.76% lower at 70.5 sen on Thursday, bringing the group a market capitalisation of RM197.2 million.