KUALA LUMPUR: Doraley Assets Management Ltd has ceased to be a substantial shareholder of SAAG Consolidated (M) Bhd in a further reduction of its interest in the oil and gas (O&G) player.

The British Virgin Islands-registered fund disposed of 17.5 million shares, representing a 1.56% stake in SAAG, on Nov 4, 2009.

According to filings to Bursa, as a result of the recent sale, Doraley reduced its stake in SAAG to 47.1 million shares or a 4.2% stake. Before this, the fund had disposed of 32.49 million shares or 2.89% stake, between Oct 28 and Nov 3.

Doraley emerged as a substantial shareholder of SAAG on Oct 20 when it acquired 44.8 million shares, thereby increasing its stake in the O&G company to 8.68% or 97.1 million shares.

In August, two SAAG directors — Anand Subramanian and Loganathan Ramanujam — ceased to be substantial shareholders of the company while at the end of September, another foreign fund — Stafford Investments Ltd — did likewise.

Both Anand’s and Loganathan’s company Taipan Holdings Sdn Bhd had its indirect holding in SAAG cut to 4.73% from 5.35% on Aug 25 due to the conversion of exchangeable bonds.

Stafford sold six million SAAG shares in the open market, reducing its shareholding to 45.1 million shares or a 4% stake.

SAAG ended yesterday at its six-month low of 20.5 sen. It had hit its 52-week low of 15 sen on March 19, 2009 and jumped to its 52-week high of 39 sen on May 13.

It posted a net loss of RM2.5 million in the second quarter ended June 30, 2009 versus a net profit of RM12.4 million a year earlier.

For the six months to June 30, it incurred a net loss of RM2.7 million versus a net profit of RM25.3 million a year earlier.

In an announcement to Bursa, SAAG noted that the poorer results were due to lower revenue as well as an increase in administration expenses.


This article appeared in The Edge Financial Daily, November 11, 2009.