2 Companies with Substantial Shareholder Activity

Credit: reynermedia

Substantial shareholders are shareholders who own 5% or more of a company. Although they are often not involved with managing a company and are thus not strictly classified as ‘insiders,’ their moves with a company’s shares might be worth noting too for investors for the simple reason that they have a big stake and would likely have done the requisite homework.

With these in mind, let’s take a look at two companies with substantial shareholder activity over the past two weeks.

1. ISDN Holdings Limited  (SGX: I07)

Founded in 1987 as a company dealing with motor trading and sales, ISDN Holdings has evolved to become a mini-conglomerate today with interests in energy, hi-tech farming, and engineering solutions.

The company currently has more than 90 sales offices across Asia and provides its services to nearly 5,000 customers that are involved with diverse fields including renewable energy, pharmaceuticals, oil & gas, manufacturing, water treatment, and more.

On 9 October 2015, Tan Thiam Chye, a substantial shareholder of ISDN Holdings, sold 97,100 shares at an average price of S$0.205 each. The purchase effectively reduced his total stake in the company slightly from 8.01% to 7.99%.

ISDN Holdings’ shares are exchanging hands at S$0.215 each at the moment. This gives the company a trailing PE (price/earnings) ratio of 8 and a dividend yield of 1.86% thanks to its annual dividend of S$0.004 per share each in 2014.

2. Hyflux Ltd (SGX:600)

Hyflux is in the business of providing water, power, and environmental solutions. It’s a fully-integrated provider in its line of work and has businesses across the globe.

In Singapore, Hyflux is renowned for NEWater, which is recycled waste water that becomes safe for consumption after undergoing treatment. Hyflux has a strong pedigree when it comes to execution given that it had built the world’s largest seawater reverse osmosis desalination plant in Algeria in 2008 and the largest membrane-based seawater desalination facility in Singapore in 2013.

On 22 October 2015, Matthews International Funds, an investment firm which is one of Hyflux’s substantial shareholders, sold off 327,400 shares of the firm at an average price of S$0.705 each. With that, the investment outfit’s stake in Hyflux had dropped from 7.03% to 6.99%.

Hyfux is currently trading at S$0.70 per share. The firm had made a loss over the last 12 months.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor James Yeo doesn’t own shares in any companies mentioned.