MD raises stake in Perisai

PETALING JAYA: Perisai Petroleum Teknologi Bhd managing director Zainol Izzet Mohamed Ishak made a slick call by exercising his option to buy 66 million ordinary shares of the company at 48.5 sen per share, according to CIMB Research.

The offshore services provider for the oil and gas sector told Bursa Malaysia that on Wednesday, Zainol Izzet had exercised an option to buy the ordinary shares of 10 sen each from HCM Logistics Ltd, which is a subsidiary of Perisai Petroleum’s major shareholder Ezra Holdings Ltd.

“It demonstrates his commitment to the company. We take a positive view of this compensation and means of motivation,” said CIMB Research in a note.

CIMB Research said the transaction would make Zainol Izzet the company’s fourth largest shareholder with an 8% stake, after Ezra Holdings, Mercury Pacific Marine Pte Ltd and Lynear Plus Ltd.

“This will reduce Ezra’s stake from 25% to 17%, and leaves it as the largest shareholder of Perisai Petroleum.

“This means that Ezra can raise its stake by another 15% without triggering a general offer,” it said.

Meanwhile, on Monday, Perisai Petroleum also told Bursa that the company’s principal officer Finton Tuan Kit Ming had bought 30,000 ordinary shares at 83.5 sen per share on the open market onmarch 28.

CIMB Research said Zainol Izzet’s share acquisition was not surprising, and this would be an incentive for him to continue growing the company.

The research house said Zainol Izzet’s restructuring of the company in 2010 set the stage for a record core net profit of Rm35mil in 2011, equivalent to blistering growth of 244% and marking perisai petroleum’s first earnings growth since 2007.

“We forecast new net profit highs for 2012 to 2014.”

CIMB Research has an “outperform” call on Perisai Petroleum’s stock, with a target price of RM1.50.