#Hot Stock* New shareholder spurs IRCB shares

  • Tuhan Harun case postponed again to July 22 – Bernama
    Tuhan Harun case postponed again to July 22 – Bernama

    The Lower Shariah Court today postponed again the case of leader of the “Tuhan Harun” deviant sect, Harun Mat Saat, to July 22. Judge Abdul Wahid Mohd Ali set the date after hearing the application from Pahang Islamic Religious Department deputy prosecutor Mohd Fahmi Abd Jalil that he needed more time to examine the legal representation... …

  • What if flight MH370 is never found?
    What if flight MH370 is never found?

    Despite assurances from Malaysia and Australia that the search will continue for Malaysia Airlines flight MH370, the lack of significant leads after almost seven weeks are leading many to ask: What if the jetliner that disappeared over the southern Indian Ocean is never found? At the start of the massive international search effort, such a... …

  • New law to give Sarawak natives freedom in purchasing customary rights land
    New law to give Sarawak natives freedom in purchasing customary rights land

    Bumiputera from Sarawak could eventually buy Native Customary Rights (NCR) land outside their ethnic group or community when the state amends its Land Code in November. Chief Minister Tan Sri Adenan Satem (pic, right), in disclosing the government's intention to table the amendment at its Budget sitting, said with the amendment the Iban, for... …

  • Cops cannot declare May Day rally illegal, lawyer says
    Cops cannot declare May Day rally illegal, lawyer says

    KUALA LUMPUR, April 24 — There are no provisions under the Peaceful Assembly Act (PAA) 2012 that allows the authorities to declare the anti-GST rally planned for May 1 as illegal, human rights... …

  • On May Day, trade unions to rally against GST, TPPA
    On May Day, trade unions to rally against GST, TPPA

    SUBANG JAYA, April 24 — The Malaysian Trades Union Congress (MTUC) announced today a May Day rally to protest against Putrajaya’s newly-approved consumption tax system and a US-led free trade... …

  • Rafizi rips apart deputy minister's grant denial

    A PKR leader has pointed out that Abu Bakar Mohamad Diah referred to grant recipients from a different time period when denying that RM100 million was allocated to a firm purportedly favoured by Prime Minister Najib Abdul Razak. Rafizi Ramli also questioned if this was an oversight on the part of the science, technology and innovation deputy minister or a deliberate attempt to put a lid on the matter. In a statement today, the PKR director of strategy said Abu Bakar (left) disclosed to the …

KUALA LUMPUR (Jan 15): Integrated Rubber Corp Bhd's (IRCB) share price jumped as much as 10% on Tuesday afternoon after the financially troubled rubber glove manufacturer roped in a former industry executive as a major shareholder to helm the firm.

Cheang Phoy Ken, the former managing director and owner of delisted rubber glove producer Seal Polymer Industries Bhd, has secured management control of IRCB. This follows Cheang's acquisition of about 10% equity interest from the controlling shareholders.

IRCB said last week it had appointed Cheang, 59, as managing director of IRCB, following the resignation of Tan Keng Beng, 50, after his family sold a 10.98% stake to Cheang via an off-market deal.

At 3.22pm, IRCB was trading at 16 sen, with 13 million shares done, after rising as much as 1.5 sen to 17 sen earlier. The stock was among the 10 most actively traded counters on Bursa Malaysia.

A dealer said the emergence of new major shareholders tends to have a positive impact on penny stocks. "The rise in IRCB shares is possibly due to this reason," the dealer told theedgemalaysia.com over the telephone on Tuesday.

IRCB’s share price has doubled (100%) so far this year, significantly outperforming the FBM KLCI’s 0.3% decline, according to Bloomberg data.

Cheang was previously the major shareholder of Seal Polymer, which was acquired and privatised by rival Supermax Corp Bhd at RM1.10 a share in 2007. Seal Polymer was delisted that year.

IRCB also announced the appointment of Cheang's son, Sean Kar Seng Cheang, 24, as an executive director and Lim Boon Huat, 43, as a non-executive board member.

Exchange filings show that the senior Cheang had emerged as a substantial shareholder in IRCB on Jan 4 after acquiring 65 million shares from the Tan family. At 15 sen per share, the off-market deal was worth RM9.75 million.

The sellers were Keng Beng, as well as his father Tan Koon Poon and nephew Tan Loon Guan, both of whom also relinquished their positions on the board of the company.

The Tan family's stake is held via private vehicle Chip Lam Seng Bhd, which still owns 11.3% following the off-market transaction. This compares with 25.43% as at June 2012, according to IRCB's annual report.

Bursa Malaysia updates indicate that following the off-market deal, Cheang raised his stake in IRCB on Jan 8 to 11.23% after acquiring another 1.48 million shares on the open market.

Changes in IRCB’s board and major shareholders’ equity interest came at a time when the Practice Note 17 (PN17) company was contending with weaker financials.

IRCB told the exchange in December 2012 that Malayan Banking Bhd (Maybank) had recalled the loan facilities given to the company's wholly-owned subsidiary Comfort Rubber Gloves Industries Sdn Bhd (CRG) with immediate effect.

Maybank recalled the loan facilities after CRG had defaulted on RM64.2 million worth of debt obligations, according to IRCB. As the defaulted sum was more than 5% of the net assets of IRCB, Bursa Malaysia placed IRCB under PN17 status due to its financial condition.

IRCB made a cumulative net loss of RM18 million in the nine months ended Oct 31, 2012, compared with a net loss of RM17.93 million a year earlier.

Follow @YahooMalaysia on LINE for daily news updates.

Comments on Yahoo pages are subject to our link to Comments Guidelines. You are responsible for any content that you post. Yahoo is not responsible or liable in any way for comments posted by its users. Yahoo does not in any way endorse or support comments made by its users.

  • MH370 passenger’s partner tells of strange email from sacked Fox officer The Malaysian Insider
    MH370 passenger’s partner tells of strange email from sacked Fox officer

    The partner of an American passenger aboard the missing Malaysia Airlines flight MH370 has spoken about how a Fox executive who was recently sacked by the news station had contacted her offering to raise funds on her behalf. Sarah Bajc, whose partner Philip Wood is among the 239 people on board the missing plane, told the Sydney Morning Herald... …

  • My last moments with Pa: Ramkarpal Singh The Malaysian Insider
    My last moments with Pa: Ramkarpal Singh

    A week after the tragic crash that took the lives of veteran lawyer and politician Karpal Singh and his personal aide, Michael Cornelius, his son Ramkarpal recounts the final hours with his father that fateful day. This is his story, as told to V. Anbalagan, assistant news editor. “My parents (Karpal and Gurmit) had gone to Pantai Hospital... …

  • Absolute power corrupts absolutely, Dr Mahathir reminds current leaders The Malaysian Insider
    Absolute power corrupts absolutely, Dr Mahathir reminds current leaders

    Malaysian leaders have been reminded not to look down on the public’s capability to topple a corrupt government as what had happened in the Middle East during the Arab spring, warned Tun Dr Mahathir Mohamad (pic). In his latest blog posting today, the country’s longest serving prime minister said that monarchs and dictators in the Middle East... …