PETALING JAYA – Building materials manufacturer Ajiya Bhd has successfully monetised part of its investment in Tanco Holdings Bhd, recording a gain of approximately RM14.3 million through a series of share disposals conducted between April and June 2026.
According to a filing with Bursa Malaysia, Ajiya disposed of 49.95 million Tanco shares through off-market transactions between April 29 and June 24 at an average selling price of 88.7 sen per share. The disposals generated total proceeds of RM44.31 million and reduced Ajiya’s shareholding in Tanco to 0.76% from 1.59%.
The company disclosed that the shares sold had an original investment cost of approximately RM29.99 million, resulting in a disposal gain of around RM14.32 million.
Ajiya stated that the transaction was undertaken as part of its capital management strategy aimed at unlocking investment value and improving liquidity. The proceeds will be used primarily for working capital requirements, including payments to suppliers and service providers, financing obligations and other operational expenses.
One of the most important lessons from this development is the value of disciplined capital management. Rather than maintaining a passive investment position, Ajiya chose to realise profits from its investment in Tanco and redirect the funds towards strengthening its core business operations.
The RM14.3 million gain represents a significant return on the original investment and provides additional financial flexibility without requiring the company to take on new debt.
Another notable takeaway is the timing of the disposal. Ajiya’s share sales occurred during a period of significant volatility in Tanco’s share price. Tanco shares traded at RM1.59 on April 29, the first day of the disposal period, before experiencing a sharp decline and closing at 13.5 sen on June 25.
This suggests that Ajiya was able to monetise a substantial portion of its holdings before the full extent of the price correction materialised, preserving shareholder value and reducing exposure to further market uncertainty.
While Ajiya was reducing its stake, Tanco group managing director Datuk Seri Andrew Tan Jun Suan increased his ownership position in the company.
On June 18, he acquired 44 million shares, equivalent to a 0.73% stake, at 14 sen per share through a direct business transaction valued at RM6.16 million.
Following the acquisition, his direct shareholding increased to 20.14%, while his indirect interest through investment vehicles remained at approximately 33.3%.
The purchase indicates continued confidence from a major shareholder despite the sharp decline in the company’s share price.
Tanco has attracted significant market attention this year after receiving two unusual market activity (UMA) queries from Bursa Malaysia.
In response to the regulator’s inquiries, the company stated that it was unaware of any undisclosed corporate developments that could explain the unusual trading activity and maintained that its business operations remained unaffected by fluctuations in its share price.
The episode highlights the importance of distinguishing between market sentiment and underlying business fundamentals, particularly during periods of heightened volatility.
For Ajiya, the disposal strengthens its cash position and enhances financial flexibility at a time when prudent capital allocation remains crucial. The additional funds can support operational requirements and potentially create opportunities for future investments aligned with its core building materials business.
The transaction also demonstrates management’s willingness to actively manage its investment portfolio and unlock value when market conditions are favourable.
Overall, the disposal reflects a strategic move by Ajiya to convert investment gains into liquidity, strengthen its balance sheet and support ongoing business operations, while reducing exposure to a highly volatile stock environment.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 26 Jun 26
Malaysia