KUALA LUMPUR: South Malaysia Industries Bhd (SMI) has gone to court to compel Kenanga Investment Bhd to provide further details of selling shareholders which led to the entry of a new substantial shareholder, Leong Seng Wui-controlled Target 1 Sdn Bhd.
Target 1 Sdn Bhd increased its stake in SMI to 30.669 per cent via the open market and direct business transaction, according to filings with Bursa Malaysia Securities Bhd on June 7, 2024.
The purchases led to Leong raising his indirect stake in SMI to 30.669 per cent.
In a filing with Bursa Malaysia Securities, the company said it filed an application at the court on July 3, seeking identification of sellers from Kenanga Investment Bank Bhd, which is the stockbroker for Target 1 Sdn Bhd and Velocity Capital Sdn Bhd.
The transactions involve the acquisition of 32.58 million shares by Velocity Capital and/or Target 1 Sdn Bhd as well as the acquisition of 2.5 million share by Velocity Capital through open market by Target 1 on June 5, 2024.
It also sought details on the acquisition of 29.3 million shares by Velocity Capital via direct business transaction by Target 1 on the same date.
SMI also requested Kenanga Investment to provide the complete information within seven days of the court order in the form of affidavits filed in court and served to the company's solicitors.
The company sought liberty to apply for additional documents that Kenanga Investment may hold or have custody of. "The grounds for the above application by the company is that the company believes that there is a possible breach of Section 176 of Capital Markets and Services Act 2007," it said.
The case management was fixed on July 17.
Trading in the company's shares were halted for an hour to make way for the announcement this morning.
SMI was trading half a sen lower at 50 sen a share at midday break, giving it a market capitalisation of almost RM105 million.