New shareholders for animal life sciences specialist Sunzen

According to sources, Dr Tan Kim Sing (pic), the chairman and managing director, hived off his 41.04 million shares in Sunzen, or a 27.5% stake, at 26 sen each in an off-market transaction for RM10.67mil, even as Sunzen shares reached new heights on Monday.

PETALING JAYA: New shareholders are expected to emerge soon in Sunzen Biotech Bhd after a substantial shareholder disposed of his stake in the company.

According to sources, Dr Tan Kim Sing, the chairman and managing director, hived off his 41.04 million shares in Sunzen, or a 27.5% stake, at 26 sen each in an off-market transaction for RM10.67mil, even as Sunzen shares reached new heights on Monday.

Sources said Tan sold his stake to Hong Choon Hau. Hong was recently appointed as independent and non-executive director of Sunzen on July 1. Following his substantial acquisition, he has been redesignated as non-independent and non-executive director.

In addition, sources said former inspector-general of police Tan Sri Musa Hassan is believed to be investing in Sunzen, although not a substantial stake.

A source said Tan would be retiring and the business would be run by the younger and new shareholders. Furthermore, the source said the company was currently negotiating for some potential mergers and acquisitions.

The animal life sciences specialist’s shares have gained some 76% year-to-date. It hit a record high of 37 sen on Monday. Apart from its shares, a total of 16.6 million Sunzen’s warrants were also traded off-market at 16 sen each.

Established through a management buyout in 1998, Sunzen is among the leading manufacturers of animal health products in the region.

The company manufactures and markets more than 100 types of animal health products such as feed additives, nutritional feed supplements, veterinary pharmaceuticals and animal vaccines.

Sunzen is the sole distributor for Pfizer Animal Health products in Malaysia, Singapore and Brunei.

For the financial year ended Dec 31, 2013, Sunzen reported a net profit of RM3.59mil against a net profit of RM1.42mil for the same period a year ago. Its revenue was 13.8% higher at RM37.3mil.

Sunzen posted a net profit of RM261,000 for the first quarter ended March 31 on a revenue of RM8.4mil.