KUALA LUMPUR (May 5): Digistar Corp Bhd said Lee Kok Choong has ceased to be a substantial shareholder of the company after less than four months, following his disposal of 10.1 million shares in the open market last week.

The shares, held via Star Heritage Development Sdn Bhd, represented a 2.22% stake in Digistar.

The 10.1 million shares were sold on April 28, according to Digistar's bourse filing on Friday (May 5). The counter closed at 7.5 sen on that day.

With the disposal, Star Heritage is left with 15.55 million Digistar shares or a 3.43% stake in the loss-making company.

Star Heritage had emerged as a substantial shareholder in Digitstar on Jan 12, after it subscribed to 25.65 million shares in the company via a private placement at 6.3 sen per share.

The company’s largest shareholder is its managing director Datuk Lee Wah Chong with an indirect stake of 116.88 million shares or 25.9%, the bulk of which (25.85%) is held via LWC Capital Sdn Bhd.

Digistar, whose major earnings contributors are its construction and concession segment as well as the hospitality segment, has been loss making for six years since the financial year ended Sept 30, 2017 (FY2017).

For the first quarter of FY2023, Digistar's net loss narrowed to RM198,000 from RM437,000 a year earlier, on lower finance costs. Quarterly revenue rose 21.89% to RM14.07 million from RM11.54 million.

Shares of Digistar closed unchanged at 7.5 sen on Friday, giving the company a market capitalization of RM31.91 million.