Sunview Group Bhd has proposed to sell its entire 22.44% interest in Winstar Capital Bhd for RM30.1 million in cash to nine investors.
In a Bursa Malaysia filing on Monday, Sunview said the disposal involves 70.03 million Winstar shares at 43 sen apiece under nine separate share sale agreements. The offer price is 23.9% below Winstar’s closing price of 56.5 sen on Monday.
Among the buyers are four key management personnel and substantial shareholders of Winstar, namely vice-chairman Chua Nyok Chong, chief executive officer Chua Boon Hong, chief operating officer Lee Yong Zhi and chief marketing officer Khoo Nee Cheng.
The other purchasers comprise Datuk Low Chin Koon, non-executive chairman of Tex Cycle Technology (M) Bhd and independent non-executive director of Mestron Holdings Bhd; Por Teong Eng, managing director of Mestron; Chu Kerd Yee, executive director of ES Sunlogy Bhd; as well as Ng Cheng Keng, Phuah Hue Shun and K Seng Seng Corporation Bhd.
Sunview noted that the disposal price represents a 65.4% premium to its original investment cost of 26 sen per share and a 16.2% premium to the stake’s net book value of 37 sen per share as at Sept 30, 2025. The company expects to recognise a disposal gain of approximately RM6.8 million upon completion.
Proceeds from the transaction will mainly be channelled towards working capital and debt reduction. About RM18.1 million will be allocated for engineering, procurement, construction and commissioning (EPCC) projects, while RM11.8 million will be used to repay bank borrowings.
Sunview invested RM18 million in Winstar Aluminium Manufacturing Sdn Bhd in 2023 and said the proposed sale allows it to unlock the value of its investment, improve cash flow, lower gearing and retain borrowing capacity for future undertakings.
The group added that disposing of the shares through the open market could have exerted significant downward pressure on Winstar’s share price due to the stock’s relatively low trading liquidity. The 70.03 million shares involved are equivalent to 21.3 times Winstar’s average monthly trading volume over the past six months and 6.4 times its average monthly trading volume over the past year.
The proposed disposal is subject to shareholders’ approval and is targeted for completion by the first quarter of 2027.
Based on Sunview’s audited financial statements as at Sept 30, 2025, the transaction is expected to raise its net asset per share to 19 sen from 17 sen and reduce its gearing ratio to 1.58 times from 1.82 times on a pro forma basis.
Sunview shares closed 0.5 sen lower at 37 sen on Monday, valuing the company at RM223.3 million. The stock has declined 5.1% over the past year. Winstar shares finished unchanged at 56.5 sen, giving it a market capitalisation of RM176.4 million, with the stock up 4.6% over the same period.
