Singapore Post Ltd (SingPost), which owns one of the largest retail distribution networks in the island state, has bought 56.83 million shares in GD Express Carrier Bhd for RM45.47 million.
The purchase, which was done via a series of off market transactions yesterday morning, is the biggest by a major foreign listed firm of a Malaysian company trading on the ACE market.
This makes SingPost a substantial shareholder of GD Express.
News of the acquisition helped push GD Express shares to an intra-day high of 93 sen a share, the highest the stock had traded over the past 52 trading weeks.
In a statement to the stock exchange, GD Express said that it had received notification from the substantial shareholders and directors of the company namely Lau Wing Tat, Kong Hwai Ming, Leong Chee Tong, GD Express Holdings (M) Sdn Bhd and GD Holdings International Ltd that they were the sellers of the large block of shares.
Leong is chief executive of GD Capital, while as at October last year, GD Express and GD Holdings own 32.58 per cent and 20.9 per cent of the company.
GD Express is controlled by former stockbroker Teong Teck Lean, who last month was named by the Malaysian Business magazine as the ACE markets top millionaire with a RM103.16 million net worth.
For the year ended June 30 2010, GD Express posted a revenue of RM81.84 million, while net income stood at RM5.95 million.
The company operates a network of 96 stations comprising 53 branches, 2 affiliate stations and 41 agents nationwide. It has a fleet of more than 280 trucks and vans used primarily for hauling of documents and parcels between stations.
SingPost, meanwhile, is Singapore's designated public postal licensee.
Ironically, the SingPost-GD Exp-ress deal has come on the same day, which is reportedly the closing date for submissions to be made to Khazanah Nasional Bhd for its 32 per cent stake in Pos Malaysia Bhd, the Malaysian equivalent to SingPost.