KUALA LUMPUR: REDtone International Bhd co-founder Datuk Wei Chuan Beng clarified he is not cashing out from the telco despite his disposal of a 4.67% equity stake, or five million shares, at 35 sen each, some two weeks ago.
Wei, who is also the company’s managing director, said his shareholding in REDtone would increase to above 5% in short order.
“I am not cashing out. There was a local investor in the market who wanted a block of five million shares and I thought it was okay to place out these shares considering that I have about 15 million Iculs that I have yet to exercise, on top of the stock options,” Wei told The Edge Financial Daily.
“My interest in the company is very clearly and firmly entrenched. I’m not going anywhere,” he added. However, he declined to identify the investor who bought the shares via a direct deal.
There was no filing with Bursa Malaysia on the emergence of new substantial shareholders in REDtone as at press time.
Wei had ceased to be a substantial shareholder and currently holds a 4.66% equity stake in REDtone after the share disposal. The telco’s single largest shareholder is Datuk Wira Syed Ali Syed Abbas Al Habshee, who recently raised his stake to 28.2%, followed by Berjaya Corp Bhd (9.81%).
Syed Ali, via his investment vehicle Indah Pusaka Sdn Bhd, had been buying shares on the open market at between 16 sen and 34 sen recently.
Wei’s share divestment seems to have caught the right timing as REDtone’s share price rebounded from a low of 16 sen in late September to a peak of 34 sen on Oct 18 — the highest level since January last year. The counter retreated from its October peak in the past two weeks to close at 27.5 sen yesterday.
Year to date, the stock has surged nearly 45%.
This article appeared in The Edge Financial Daily, November 11, 2011.
Wei, who is also the company’s managing director, said his shareholding in REDtone would increase to above 5% in short order.
“I am not cashing out. There was a local investor in the market who wanted a block of five million shares and I thought it was okay to place out these shares considering that I have about 15 million Iculs that I have yet to exercise, on top of the stock options,” Wei told The Edge Financial Daily.
“My interest in the company is very clearly and firmly entrenched. I’m not going anywhere,” he added. However, he declined to identify the investor who bought the shares via a direct deal.
There was no filing with Bursa Malaysia on the emergence of new substantial shareholders in REDtone as at press time.
Wei had ceased to be a substantial shareholder and currently holds a 4.66% equity stake in REDtone after the share disposal. The telco’s single largest shareholder is Datuk Wira Syed Ali Syed Abbas Al Habshee, who recently raised his stake to 28.2%, followed by Berjaya Corp Bhd (9.81%).
Wei: My interest in the company is firmly entrenched.
Syed Ali, via his investment vehicle Indah Pusaka Sdn Bhd, had been buying shares on the open market at between 16 sen and 34 sen recently.
Wei’s share divestment seems to have caught the right timing as REDtone’s share price rebounded from a low of 16 sen in late September to a peak of 34 sen on Oct 18 — the highest level since January last year. The counter retreated from its October peak in the past two weeks to close at 27.5 sen yesterday.
Year to date, the stock has surged nearly 45%.
This article appeared in The Edge Financial Daily, November 11, 2011.
