Two executive directors acquire Kronologi shares for RM43mil

PETALING JAYA: Kronologi Asia Bhd’s executive director Tan Jeck Min has emerged as the company’s single largest shareholder with a 20.39% stake, having acquired 55.13 million shares from co-founder Piti Pramotedham.

In filings with Bursa Malaysia, the enterprise data management company said Piti also disposed of 35 million shares, or a 12.95% stake, to the company’s executive director, acting group chief executive officer and chief technology officer Philip Teo.

The share purchase raised Teo’s shareholding to 13.04%. Piti had collectively sold 90.13 million shares or a roughly a third of the company’s shares to Tan and Teo for RM43.26mil.

“The board recognises Teo’s and Tan’s individual decisions to acquire the substantial shareholding in Kronologi.

“They have provided confidence and continuity in the business the last two years and have been instrumental in strengthening the group’s operational and financial performance.

“The board will collectively support the executive management team’s efforts to grow the business and create value for our shareholders,” Kronologi told Bursa Malaysia yesterday.

According to Bloomberg data, the transactions were done on Tuesday at a price of 48 sen per share.

Subsequent to the disposal, Piti, who stepped down as executive chairman in September 2015, is left with 35.55 million shares, or a 13.15% stake in the company.

Last month, StarBiz reported that the Ace market-listed company plans to raise funds to meet the capital requirements of its regional expansion plans in the medium-term.

Besides India, the group is present in Singapore, Malaysia, Indonesia, Thailand and the Philippines.

For the first quarter ended March 31, 2017, Kronologi registered a net profit of RM2.04mil, a 49% growth from the corresponding quarter last year.

The higher profit was due to a 78% increase in revenue during the quarter, as well as recognised deferred tax assets arising from a temporary difference on utilised capital allowance.

The revenue of RM25.19mil recorded during the quarter included contributions from Kronologi’s wholly owned subsidiary, Quantum Storage (India) Pte Ltd.

As of March 31, Kronologi’s cash and bank balances rose to RM10.9mil from the previous quarter’s RM8.3mil.