KUALA LUMPUR: Johor-based electronics manufacturing services provider Cape EMS Bhd was among the most active counters on the local bourse yesterday, with signs of significant activity brewing around the company.
The counter maintained positive momentum for the second straight day, buoyed by businessman Chung Chee Yang's acquisition of an additional 7.0 million shares this week.
Shares of Cape EMS climbed as much as 6.7 per cent to 40 sen during the morning session before closing at 38.5 sen, giving the company a market capitalisation of close to RM382 million.
"Several investors have shown interest in acquiring a block of shares in Cape EMS in recent months, following its share price dip earlier this year. Talks suggest they are drawn by the company's growth potential and efforts to move up the value chain," according to industry sources.
Chung became a substantial shareholder on November 13 after purchasing 8.42 million shares on the open market, raising his stake to 5.0 per cent, or 49.61 million shares. He currently holds an 8.87 per cent stake in Cypark Resources Bhd as well.
Adding to the speculation, Ekuiti Nasional Bhd (Ekuinas) was reportedly among potential suitors eyeing a stake in Cape EMS as of November 4.
Meanwhile, group chief executive officer and managing director Christina Tee Kim Chin reduced her shareholding in Cape EMS to 11.13 per cent, or 110 million shares, from 38.39 per cent in August 2024.
Similarly, the Employees Provident Fund (EPF) sold six million shares in August, lowering its stake to 4.44 per cent from 5.04 per cent, thereby ceasing to be a substantial shareholder.