Dimensi BisnesEnglish

Hong Kong Investor Raises His Stake In 5G Capable XOX Bhd

Reporting by writer BacalahMalaysia.my

 

Daniel Tam, who is linked to Hong Kong billionaire Li Ka-Shing has raised his stake in XOX Bhd and now controls 8.22 per cent of the company.

In a filing with Bursa Malaysia today, XOX said Daniel Tam acquired 20 million shares in the company via open market transaction today.

Yesterday, he acquired 120 million shares via the company’s Private Placement giving him a 7.05 per cent shareholding in XOX.

In a separate statement, XOX said the Private Placement has been completed following the listing and quotation of 207.72 million and 120 million Placement Shares, being the first and final tranche of Placement Shares for the Private Placement, on the ACE Market of Bursa Securities on 22 July 2020, and 23 July 2020 respectively.

The stock rose to 20.5 in early morning trade today. The closing price remained unchanged at 18.5 sen, maintaining the company’s market capitalisation at RM295 million. Some 546 million exchanged hands.

Daniel Tam emerging as a substantial shareholder in XOX raises some questions like whether he is buying the shares for himself as a long term investor to ride on the company’s 5G potential, or is he acquiring them as a proxy for Li Ka-Shing, also known as “Superman”.

According to Forbes, Li Ka-Shing has a networth of US$26.5 billion as of July 21, 2020 and he is one of the most influential businessmen in Asia. The billionaire retired as chairman of CK Hutchison Holdings and CK Asset Holdings in May 2018 but remains senior advisor.

How Daniel Tam is linked to Li Ka-Shing is via their shareholding in a large Hong Kong-listed investment group, in which the billionaire holds a substantial stake. Daniel Tam is also a director of this same group.

Daniel Tam is also a director of another Hong Kong-listed Chong Kin Group Holdings Ltd, a concrete services provider, which is currently trading around HK3.00. Chong Kin is actively exploring business opportunities in different sectors to diversify its source of income.

Could it be that Daniel Tam may inject new business into XOX or could it be that Chong Kin is eyeing XOX also?

XOX is entering into the fifth-generation (5G) wireless mobile network business in Malaysia in partnership with one of China’s top telecommunications (telecom) groups. There are only three top players in China – China Mobile, China Telecom, or China Unicom.

XOX CEO Ng Kok Hen confirmed with the New Straits Times recently that one of the top telecom groups in China had approached the company to develop a 5G network in Malaysia and planning is underway.

The Chinese telecom group is expected to invest up to RM10 billion to develop the infrastructure over five to six years.

XOX also has a partnership with Wetek Technology (Malaysia) Sdn Bhd, which has a money lending licence to provide micro-financing of up to RM1 billion to XOX’s existing 2.2 million subscribers in Malaysia.

Wetek, whose directors are Howard Leung Hao, chairman and CEO of Brilliant (Hong Kong) Holdings Ltd, and Liang Zeng, an internet entrepreneur and venture capitalist, is also looking to provide micro-financing in the amount of RM2 billion to entrepreneurs and small business owners in Southeast Asia, together with XOX.

The micro-financing business in Malaysia, which is starting soon, will immediately improve XOX’s bottomline by a significant amount. XOX’s subscriber base is also expected to double up by the end of this year.

This service will be extended to individuals and small businesses who have no access to conventional banking and related services by populating XOX’s eWallet for usage in the XOX Digital Marketplace. – BACALAHMALAYSIA.MY

BacalahMalaysia Team

Berita portal paling trending di negara ini. Tanpa prejudis menjadikan suara rakyat didengari sewajarnya, ada kelainan, dekat di hati masyarakat dan pemerintah. Currently the country's most trending news portal. Prejudice free website that prioritizes and listens to the voice of the people with a difference, community and authority friendly

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close