Bolton’s move should remove share overhang

PETALING JAYA: Property firm Bolton Bhd's placement of 21% of its shares on Tuesday to local and foreign funds, including to the company's major shareholders, should remove share overhang and help narrow the company's large discount to its real net asset value of 62%.

In a report, Hwang DBS said it was positive on the share-placement exercise because of this.

Bolton's large discount to RNAV stood at 62% versus the RNAV of other small mid-cap developers which was at an average of 50%, the research house said yesterday.

The company declined to comment who the buyers and sellers of the shares were when contacted.

The off-market deals, 13 in all, were done at RM1 per share, according to information on Bursa Malaysia.

According to Bolton's 2010 annual report, executive chairman Datuk Mohamed Azman Yahya held a 18.8% stake in the company via Gajahrimau Capital Sdn Bhd while Lee Choong Lim @ Lee Ting Fook had a 23.52% stake via Forum Equity Sdn Bhd as at mid-year last year.

Recent filings with Bursa Malaysia revealed that Lim Hooi Teik, a substantial shareholder of the company, raised his direct and indirect stake to 9.47% from 8.93% earlier in the year.

At the close yesterday, Bolton shares finished 5 sen higher at RM1.08.

By The Star