The Edge Singapore Thu, Jun 09, 2022
US-based asset manager BlackRock, a substantial shareholder of Venture Corp, has increased its stake in the manufacturing services provider. On May 31, BlackRock acquired 367,600 shares on the open market for $6.58 million of $17.90 each. BlackRock now holds around 17.6 million Venture shares, or a 6.05% stake, up from 5.93%. The stake change was disclosed in a June 2 filing.
Before the transaction, Blackrock’s most recent open market purchase of Venture shares was on Nov 30, when it acquired 728,800 shares for $18.55 each.
On Nov 5, 2021, the company announced that with effect from Jan 1, Wong Ngit Liong would relinquish his role as CEO to former chief operating officer Lee Ghai Keen. Wong would remain as Venture’s executive chairman. On Nov 8, 2021, Wong bought 200,000 shares at $18.73 each, bringing his total stake to nearly 20.65 million shares, or 7.106% of the company.
Venture itself has undertaken some share buybacks as well. The most recent was on March 2 and April 29 when it acquired 5,000 shares each for $17.2 and 23,000 shares for $17.62 each respectively.
On April 29, Venture reported revenue of $889.3 million for 1QFY2022 ended March, up 29.5% y-o-y. As it was able to maintain its net margins at 9.5% despite inflationary pressures, Venture was able to record a corresponding increase in its earnings by 28.6% y-o-y to $84 million from $65.3 million.
Citing customers’ orders and forecasts, Venture sees a steady demand outlook across the board. “Recent new product launches have been well received by end-customers and have contributed to additional growth. Several initiatives by our R&D labs have enabled us to mitigate supply chain disruptions and expand our capabilities to fulfil more orders,” the company says.
Concerts to resume
GHY Culture and Media Holding, whose drama and concert production business was hit by the pandemic, has been steadily buying back its own shares. Most recently, on June 6 and 7, it had acquired 30,200 shares at 53.6 cents each and 42,000 shares at 54 cents each respectively. This brings its cumulative buyback under the current mandate to 406,300 shares.
Before the transaction, GHY on May 31, June 1 and June 3, bought back 13,000 shares, 33,500 shares and 22,000 shares at 54 cents each on the open market respectively. Earlier on May 25, 27 and 30, it had also acquired 27,000 shares for 54.5 cents each, 46,600 shares for 53.795 cents each and 30,000 shares for 54.5 cents each respectively.
In an April 22 response to questions by the Securities Investors Association (Singapore), GHY noted that China’s tough measures to combat the pandemic have curbed its activities in China.
However, GHY has already planned a lineup of concerts featuring Jay Chou in Singapore, Malaysia and Australia between December and March 2023.
No longer a shareholder
The position of Kim Heng’s second-largest shareholder has changed hands. On June 3, Credence Partners sold its entire stake of 17.71% in the offshore services provider to Hildrics Capital at 10.5 cents each in a married deal.
Credence Capital has held its stake in Kim Heng since its IPO back in 2014. Tan Chow Boon, managing partner of Credence Partners, sits on Kim Heng’s board since 2013 as a non-executive director.
There were notable names on both sides of the deal. Koh Boon Hwee, former chairman of leading Singapore Inc companies such as Singapore Airlines, DBS Group Holdings and Singapore Telecommunications, is with Credence Partners. Hildrics Capital is jointly owned by Choo Kee Siong, a former banker with the United Overseas Bank, and Wee Teng Chuen, whose father is UOB CEO Wee Ee Cheong. On May 11, Hildrics announced it had raised some $120 million for its first fund.
The largest block of more than 40% stake in Kim Heng is held by executive chairman Thomas Tan Keng Siong and related parties. Under Tan, the company has repositioned itself to support clients in the renewable energy sector as well.
