Lee Kim Yew, Tan Choon Hwa and Lim Hwa Tat buying more SMTrack shares, expect reinstatement as substantial shareholders

KUALA LUMPUR, 13th January 2022: Tan Sri Lee Kim Yew, Datuk Seri Tan Choon Hwa and Datuk Justin Lim Hwa Tat are expected to be buying more shares in SMTrack Bhd (“SMTrack”, Stock Code: 0169) and is would be reinstated as substantial shareholders of SMTrack again.

The buying are necessary after their shareholdings were diluted pursuant to an enlargement of the company’s share capital arising from the conversion of 75 million redeemable convertible notes.

Tan Sri Lee, who is the founder and executive chairman of Country Heights Holdings Bhd, had earlier surfaced as a substantial shareholder of SMTrack on 29th December 2021, after acquiring 28.5 million shares or a 5.05% stake on the open market.

On 6th January, Tan also surfaced as the radio frequency identification solutions company’s new substantial shareholder, after raising his stake to 5.4% from 3.16% previously.

On the next day 7th January, Lim, who is managing director of Sersol Bhd, also emerged as SMTrack’s new major shareholder after acquiring 29 million shares or 5.14% stake via an open market transaction.

On the same day, Tan and Lim were appointed as directors of SMTrack.

The shareholding changes and the new appointment came amid news that a government-linked company (GLC) is eyeing a 10% stake in SMTrack.

In confirming the news, SMTrack said on 6th January that it is in early negotiations with a GLC.“

This week’s edition of The Edge Malaysia weekly, reported that something big could happen as a signing ceremony — between SMTrack, Country Heights, Jiankun International Bhd, Sersol Bhd, AHB Holdings Bhd, Techna-X Bhd, MQ Technology Bhd and 5G Infratech Malaysia Sdn Bhd — is scheduled to be held on today. But according to sources, the signing ceremony is reschedule to next Monday to accommodate the busy schedule of the guest of honour.

SMTrack, which was the most actively traded stock on Wednesday, saw 110.6 million shares traded. It closed unchanged at 30 sen, valuing the group at RM191.75 million. SMTrack has risen from 16 sen since Dec 29, 2020, when Tan Sri Lee emerged as its shareholder. The company which share price has been gaining traction with upward momentum and the volume has been sustainable. Coincidentally, SMTrack is traded on the ACE Market of Malaysia, a market designed for companies with growth prospects.