PETALING JAYA: Censof Holdings Bhd has been forced by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd to dispose of a 2.45% stake or 43 million shares in its associate company Dagang NeXchange Bhd (DNeX) for RM3.92 million.
This comes as DNeX shares have plunged 62.8% since early this month amid heavy market selloff. The counter closed 1 sen lower at 8 sen yesterday on 57.36 million shares done.
Forced selling of shares occurs when the market value of the shares under the account dips to a level when the margin percentage (market value of shares versus total amount financed) hits a certain threshold. This differs between banks and stockbroking firms.
With the forced selling, Censof’s shareholding in DNeX has been reduced to 13.2%, according to a filing with Bursa Malaysia.
The disposal has resulted in a loss of RM10.71 million at the group level and RM4.84 million at the company level given that the original cost of investment for the block of shares was RM8.763 million.
“The shares disposal would raise total proceeds of RM3.92 million which will be utilised to reduce the share margin loan by rectifying the shortfall position of margin call after the forced selling action taken by MIDF,” it said.
source https://www.thesundaily.my/business/censof-forced-to-sell-dagang-nexchange-stake-amid-market-meltdown-BB2146311
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