$MMAG (0034.MY)$ soared 11.63% to RM0.72 with a turnover of RM3.53 million.
$NEXG (5216.MY)$ formerly known as Datasonic Group Bhd, has emerged as a substantial shareholder of MMAG Holdings after acquiring a 9.53% stake in the company.
The technology solutions provider purchased 175 million MMAG shares, representing a 7.58% equity interest, for RM70 million in cash at 40 sen per share through a direct business transaction on Thursday. The seller was Chan Swee Ying, who simultaneously resigned as MMAG's alternate director and ceased to be a substantial shareholder.
Notably, the acquisition price of 40 sen per share represents a 38% discount to MMAG's closing price of 64.5 sen on the transaction day. This follows NexG's earlier purchase of 45 million MMAG shares (1.95% stake) for RM18 million on March 5.
In a Bursa Malaysia filing, NexG stated: "This investment allows us to diversify into new segments, particularly MMAG's supply chain management business. The collaboration could enable NexG to offer comprehensive security and ID solutions with integrated logistics support by leveraging MMAG's expertise in logistics, warehousing, and aviation services."
The development comes amid notable boardroom changes at both companies. Former Public Service Department director-general Tan Sri Mohd Khairul Adib Abd Rahman became a substantial shareholder of NexG on March 24, the same day he stepped down as MMAG chairman citing personal reasons.
MMAG's shares have seen increased volatility recently, with intraday short selling suspended on Monday after the stock plunged 22.44% to an intraday low of 60.5 sen. On Thursday, MMAG closed 2.27% lower at 64.5 sen, valuing the company at RM1.49 billion, while NexG remained unchanged at 25.5 sen with a market cap of RM757.6 million.
Market analysts are closely watching how this strategic investment will impact both companies' business synergies moving forward.
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