Sin Chew Daily - Lim Wei Chai steps into property and housing; Becomes 2nd major shareolder after boosting Tropicana to 10.24%
Kuala Lumpur, 25 October 2017 – Executive Chairman of Top Glove Corp. Bhd. (TOPGLOV, 7113, main market, industrial products) Tan Sri Lim Wee Chai steps into property and housing industry and becoming the biggest shareholder after Tan Sri Danny Tan Chee Sing by holding more than 10% shares at Tropicana Crop. Bhd. (TROP, 5401, main market, property).
The above-mentioned news boost the share price of Tropicana to record high since 2015, the amount of trading is also about 8 times higher than the average of 3 months.
Tropicana Corp. Bhd. breaks through RM 1.00 on Wednesday, rise 9 sen to RM 1.02 with closing gains narrowed 5.5 sen to 98.5 sen. Top Glove’s share price rose 6 sen to RM 6.45.
The 59 years old of Tan Sri Lim snapped up an additional 8.5% stake in Tropicana, making him a substantial shareholder with about 150.08 shares or 10.24% direct shareholding in the group.
Tan Sri Lim bought the shares from Founder of Tropicana Corp. Bhd, Tan Sri Danny Tan Chee Sing and his subsidiaries companies as well. According to the filing in Bursa Malaysia, Tan Sri Danny Tan disposed his shares of 82.86mil or 5.68% equity. Meanwhile, he also sold shares for both his listed subsidiaries, Golden Diversity and Aliran Firasat at 33.5mil shares and 8.21mil shares respectively.
To date, Tan Sri Danny Tan is still the biggest shareholder in Tropicana with direct holding of 361.645mil shares or 24.673% and indirect holding of 570.118mil shares or 38.895%.
Tan Sri Lim said in a statement that he has always been fascinated with the property sector and optimistic that Tropicana is the right company to be with, given their good track record.
“Over the years, Tropicana has proven itself by delivering high quality and iconic projects to its customers. I believes with my business experiences and contacts regionally and internationally, it able to contribute positively to move Tropicana up the value chain.”
Tan Sri Lim added that he looks forward to work closely with the Tropicana management team in upholding business ethics of honesty, integrity, and transparency in enhancing corporate governance, shareholders value, and competitive edge of Tropicana.
As at 24 October 2017, Tropicana has a total land bank of over 1,000 acres nationwide.
Tan Sri Danny Tan Chee Sing commented that the latest board members consist of iconic corporate figures that have made significant impact within their respective industries, locally and internationally. By lending their successful and diversified experience, it is sure to give the group a broader perspective, adding vibrancy and creativity to our overall business strategy.
Additionally, Tropicana announced that Datuk Lim Thean Shiang has been appointed as an Independent Non-Executive Director of Tropicana. Datuk Lim is also an Executive Director and Group Chief Executive Officer of Daya Materials Bhd. (DAYA, 0091, main market, trading & services) since 2015. He has over 20 years of experience in property development and construction, which will be an invaluable contribution to the development of the group.
On the same day, Tan Sri Danny Tan appointed his third son, Dion Tan Yong Chien as Managing Director, whereas the group Chief Executive Officer (CEO) Datuk Yau Kong Seng decided to retire on 30 November 2017 due to health reasons.
Property stock valuation is low, the investment value emerge
The announcement of new shareholder for both property company Tropicana Corp. Bhd. and Titijaya Land Bhd. (TITIJAYA, 5239, main market, property) causing the market to perceive there’s a sink in property market, hence part of chinese conglomerate invest for future preparation.
During a phone interview from Sin Chew Financial reporter with Tham, property analyzer, the equity trading of this two-property company are merely personal investment while the other with possibility of merging of corporate in future.
Property market seems soft, will rise after consolidation
She added, the property market seems soft now and it will not worsen, but it will take time to consolidate for another up rise market.
“Other than equity trading by property companies, there’s also acquisition of landbank by major property company such as Sunway Bhd. (SUNWAY, 5211, main market, trading & services) and Mah Sing Group Bhd. (MAHSING, 8583, main market, property).”
Among the 9 property companies from the survey, 2017 annual benefit ratio between 45.6 times to 4.7 times, the highest is Glomac Bhd. (GLOMAC, 5020, main market, property), the lowest is Hua Yang Bhd. (HUAYANG, 5062, main market, property).
The property analyzer thinks the current period is beneficial to buyers especially for company or personal investor with sufficient cash flow.
It is hard to predict if there’s trend for merging and acquisition, he said “The merging and acquisition in property companies are lesser and currently there’s isn’t any trend yet.”
On Tuesday, Tropicana Corp. Bhd. announced the appointment of Tan Sri Lim Wee Chai, Executive Chairman from Top Glove Corp. Bhd. and Brem Holding Bhd. (BREM, 8761, main property, construction) as Tropicana’s major shareholder.
Up to date, the most guarded trading activities between property company is the merging of SP Setia Bhd. (SPSETIA, 8664, main market, property) and I&P Group (I&P) with total value of RM 3.65bil.
On top of that, Hua Yang Bhd forking out RM123.7mil to boost its stake in another property group, Magna Prima Bhd (MAGNA, 7617, main market, property), which will result in it becoming the largest shareholder.
In this year, Sunway Bhd. and Mah Sing Group Bhd. acquires major landbanks around Klang Valley and the acquisition of Singapore’s landbank by IOI Properties Group Bhd. (IPIPG, 5249, main market, property) at higher market price are known as “land expansion year” for these companies.
