SINGAPORE (Apr 23): On April 16, Brunei’s Prince Abdul Qawi and OSIM founder Ron Sim collectively acquired a 5.3% stake in concert and events company UnUsUaL. This was the result of an off-market sale of 55.5 million UnUsUaL shares by UnUsUaL Management, a subsidiary of mm2 Asia.

The price consideration was 46.5 cents a share, or $25.8 million in total. Prince Qawi and Sim’s regional fund R3 Asian Gems paid $22.8 million and $3 million, respectively. This implies that Prince Qawi bought 49 million UnUsUaL shares, or a 4.8% stake, while Sim acquired the remaining 6.5 million UnUsUaL shares, or a 0.6% stake.

The transaction has reduced the direct interest of UnUsUaL Management to 76.8%, or 790.3 million shares. Even so, it is still the company’s largest shareholder.

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UnUsUaL is a subsidiary of mm2 Asia. It was spun out and listed on the Catalist board of the Singapore Exchange last year. The company has operations in several countries through its subsidiaries UnUsUaL Entertainment, UnUsUaL Productions and UnUsUaL Development here; UnUsUaL Productions in Malaysia; and UnUsUaL Entertainment International (UEI) in Hong Kong.

The company typically produces 15 shows a year and has organised concerts for the likes of Hong Kong star Andy Lau and Taiwanese pop king Jay Chou. It has also produced concerts for big-name bands such as The Rolling Stones and Air Supply, as well as global artistes such as Michael Bublé.

UnUsUaL intends to expand rapidly into China. On March 20, the company announced that UEI was acquiring a 49% stake in Beijing Wish for RMB25.2 million ($5.3 million) in cash. Incorporated in China, Beijing Wish is mainly engaged in the film production and distribution as well as the commercial performance and concert brokerage businesses. The company has a registered and paid-up capital of RMB5 million.

UnUsUaL says the proposed acquisition is a “strategic investment” in line with its strategy to expand its presence in China. “The company believes that Beijing Wish will be our vehicle in China upon completion of the proposed acquisition,” it says in a filing to the bourse.

For 9MFY2018 ended Dec 31, UnUsUaL’s revenue almost doubled y-o-y to $30.1 million from $15.3 million. Revenue from film promotion increased $14.3 million, or 337%. This was offset by a $400,000 decrease in production revenue. Earnings jumped 26% y-o-y to $6.5 million from $5.2 million.

Shares of UnUsUaL have surged 63.4% over the past 12 months to close at 48.5 cents on April 18.

Elsewhere, LHT Holdings executive chairman, managing director and CEO Yap Mui Kee bought 6,100 shares in her company at 78 cents apiece. The transaction was conducted on the open market on April 17. This enlarged her direct interest in LHT to 12.5%, or 6.6 million shares. Yap has no deemed interest in the company.

LHT has been in the timber industry for over 40 years. It has grown into one of the largest manufacturers of wooden pallets, boxes and crates in Singapore. The company was listed on the Mainboard of SGX in 1999. Over the years, LHT has refined its processes and pallets. Today, its engineered pallets use a combination of technical wood and laminated veneer lumber. Technical wood is made from wood waste that is shredded into wood chips and then glued together in a process that involves high temperature and pressure.

For FY2017 ended Dec 31, LHT’s revenue declined 16.7% y-o-y to $40.6 million from $48.8 million. LHT says it saw reduced demand for pallets during the year, despite higher demand for timber-related products. The company nearly doubled its earnings to $7.5 million, however, from $3.9 million a year ago. The increase was mainly due to a gain on disposal of plant, property and equipment of $5.9 million.

In LHT’s annual report released on April 9, Yap says market conditions will remain challenging and the company’s profit margin continues to be under pressure. “In view of this, the group will continue to keep up its marketing efforts as well as cost management. The group will continue to enhance its competitiveness by maintaining product quality, prompt delivery, cost-control measures and improvements in productivity,” she says.

Shares in LHT have climbed 13.7% over the past 12 months to close at 78 cents on April 18.

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