KUALA LUMPUR (Oct 5): In explaining its series of transactions on Sabah-based gold miner Bahvest Resources Bhd, Kretam Holdings Bhd justified that it viewed the former as an investment with potential after taking into consideration the uptrend in gold prices in recent years.

Earlier, the Bursa Securities queried Kretam on the transactions that saw its fully-owned subsidiary Innosabah Capital Holdings Sdn Bhd acquiring 12.95% or 160.58 million shares of Bahvest, between Nov 29, 2022 and Oct 2, 2023.

The series of acquisitions and disposals of Bahvest shares resulted in the current 12.22% stake.

Meanwhile, Kretam also clarified that as it stands, the group has a net gain of RM5.97 million through the 12.22% holdings in Bahvest.

Separately, the group also highlighted that Datuk Freddy Lim and his son Lim Tshung Yu are directors of Kretam but are not directors of Bahvest.

According to Bloomberg data, Lim is the largest shareholder in Kretam with 1.09 billion shares or 66.13%, as of July 2023. Lim also holds 44.25 million Bahvest shares, representing a 3.57% stake.

Lim was among a group of shareholders who had sought a requisition for an extraordinary general meeting (EGM) to remove three board members from Bahvest, namely the group’s founder and former managing director-cum-chief executive officer Datuk Lo Fui Ming, Fui Ming’s son Lo Tek Yong, who is executive director, and non-executive chairman Datuk Seri Dr Md Kamal Bilal.

The trio resigned ahead of the Bahvest’s EGM on June 13, and after the Malaysian Anti-Corruption Commission (MACC) conducted a raid on Bahvest’s operation centre in Tawau, Sabah.

Shares in Kretam closed unchanged at 58 sen, giving it a market capitalization of RM1.36 billion.