Solution Group gains new substantial shareholder as Lavin Group increases stake

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Solution Group’s new shareholder

Highlights

Lavin Group Sdn Bhd added 28.42 million Solution Group shares on 22 Oct, raising Lau’s stake to 10.06% and making him a substantial shareholder.
Based on the 8.5 sen closing price, Lavin Group’s purchase was estimated to be worth around RM2.42 million; Lim sold 26.72 million shares worth approximately RM2.27 million.
Solution Group’s major shareholder composition changed with no operational changes announced; its shares remained unchanged at eight sen, with a market capitalisation of RM38.88 million.

This article was translated from the original. Read the original version by our correspondent here.

Transaction details and changes in shareholdings

As reported by The Edge Malaysia, Lavin Group Sdn Bhd, Lau’s investment vehicle, acquired 28.42 million shares, equivalent to a 5.85% stake, through a direct business transaction on 22 Oct, according to Solution Group’s Bursa filing on Monday.

The acquisition raised Lau’s deemed interest to 48.91 million shares, or 10.06%, making him a substantial shareholder in the company. In Malaysia, a substantial shareholder is defined as a party with a direct or indirect interest of 5% or more in a company.

The transaction price was not disclosed. However, based on Solution Group’s closing share price of 8.5 sen on 22 Oct, the block of shares was estimated to be worth around RM2.42 million.

Solution Group’s annual report shows that Lavin Group previously held 12 million shares, equivalent to a 2.48% stake, as at 8 April. On the same day Lau increased his stake, Lim disposed of 26.72 million Solution Group shares, or 5.5%, in two tranches of 24.27 million shares and 2.45 million shares.

Impact on ownership and the company’s position

Based on the same closing price, Lim may have received around RM2.27 million from the disposal. Lim previously held a 5.52% stake, making him a substantial shareholder in April 2024.

Other substantial shareholders in Solution Group include executive chairman Lim Yong Hew, with a 13.98% stake, and Cansino Biologics (Hong Kong) Ltd, with 9.08%. The latest changes alter the company’s major shareholder composition, with no details announced about any changes to its operations or corporate strategy.

Solution Group is involved in the design and development of equipment for engineering education and research, training development and curriculum content, as well as providing industrial automation solutions and systems integration for telemetry, supervisory control and data acquisition, instrumentation and control systems. The company’s shares closed unchanged at eight sen on Monday, giving it a market capitalisation of RM38.88 million.

In our earlier article on FBM weakness KLCI, we highlighted the benchmark index’s decline as concerns about U.S. inflation and the direction of interest rates once again weighed on sentiment. We also reported significant pressure on technology stocks such as YTL Power and ViTrox, alongside continued foreign net selling that added to the strain on the local market.

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