Tan Chong Internationl (TCIL 3k HK$)

Tan Chong Internationl (TCIL 3k HK$): is +4.6% at $2.04. The otherwise thinly traded counter is amongst the top volume today, arising from a married deal at 10.20am of 60m shares at $2.60/sh. This is possibly a continuation of the change in share holding transaction that occurred on 29 Jun, with Guoco likely selling off its entire remaining 60m shares (3% stake) to members and vehicles of the founding Tan family. Recall, on 29 Jun, TCIL recorded a similar transaction. According to the co filings, TCIL’s public float has now been restored to 28.6% (from 22.7%), above the min level required by the HK listing rules. Guoco will cease to be a significant sh/h, with its stake sold down from 19.88% to 3%. Nevertheless, we note that the “new shareholders” are a vehicle partially owned by the largest sh/h Tan Eng Soon, as well as his brother Dato Tan Heng Chew, hence the reported free float may not be accurate (in substance).