Winsun Technologies to have new CEO soon?

Winsun Technologies to have new CEO soon?
KUALA LUMPUR: Winsun Technologies Bhd chief executive officer Choong Siew Meng has been aggressively disposing his stakes in the company over the past one week, raising questions if there will be a change in the company's leadership.

Choong, who had 80.49 million Winsun shares (or 26.83 per cent stake) early this year, has sold  more than 40 million shares, or half of his shareholding in the company since May 29.

A look at historical data showed that Choong disposed 19 million shares on May 29 at 13.9 sen each, when Winsun shares were traded at between 13.5 and 15.5 sen.

He sold another 10 million shares on May 31 for 14 sen each, when its shares were trading between 14 sen and 17 sen.

On Thursday, filings on Bursa Malaysia revealed that Choong sold 2.69 million shares at 13 sen each and 8.94 million shares at 12 sen each.
The series of disposals saw Choong cashed out RM5.41 million. He now only holds a 13.29 per cent stake in Winsun.

Besides Choong, his sister Choong Lai Chun had disposed her entire 43.49 million Winsun shares via off market for 12 sen each, or RM5.2 million in total.

During the period, Fast Global Investments Ltd also cuts its shareholding in the company. Recent announcement revealed that it ceased to be a substantial shareholder after disposing 7.5 million shares.

Winsun's trading volume began picking up on May 28 -- a day before Choong disposed his shares.

It was also the same day when GoodUnited Ltd and Tey Por Yee acquired 20.99 million shares and 22.5 million shares, respectively. The total amount of shares aquired by GoodUnited and Tey is 43.49 million -- the same amount of shares Lai Chun disposed.

Tey, who is the managing director and chief executive officer of NextNation Communication Bhd, went on to acquire some 30 million shares. He now holds over 53 million shares, or 17.7 per cent stake in Winsun.

Market speculates that the changes in Winsun's shareholding suggests that Choong may be on his way out, to make way for Tey to lead the company.

For most part of the year, Winsun shares on Bursa Malaysia were trading between 8-10.5 sen. It was only from May 21 that the company's shares were trading at 12 sen and above.

On May 29, the day Choong disposed 19 million Winsun shares, the company announced its plans to acquire Planet Wireless Holdings Ltd -- a mobile media content developer.

Planet Wireless is a wholly-owned unit of Ample Holdings Ltd. The acquisition is part of the company's diversification plan -- to venture into the mobile application business.

The company, which is mainly involved in the provision and design of industrial automation system, also proposed a private placement exercise comprising both mother shares and warrants. It also proposed to issue free warrants.

Post corporate exercise, Ample Holdings may have up to 16.8 per cent stake in Winsun.

Winsun shares have gained by more than 30 per cent so far this year. It was trading at 8 sen early this year.

Trading at 10.5 sen, the company currently has a market capitalisation of RM31.5 million.