Gan Yu Chai has emerged as a substantial shareholder of Radium Development Bhd after increasing his shareholding above the 5% disclosure threshold.

According to a Bursa Malaysia filing, Gan Yu Chai acquired 98.25 million Radium shares on June 22, raising his direct stake from 2.791% to 5.624%, making him an officially recognised substantial shareholder under Bursa Malaysia's reporting requirements.

Acquisition Worth Approximately RM48.6 Million

The acquisition was completed through two separate transactions:

• 97.85 million shares were acquired via a direct business transaction.
• 400,000 shares were purchased through the open market.

Based on available transaction data, the off-market block was purchased at 49.5 sen per share, amounting to approximately RM48.44 million, while the open-market purchase was valued at around RM202,000 based on the market closing price.

The total investment was therefore worth approximately RM48.6 million.

Shares Acquired from Existing Major Shareholder

The 97.85 million-share block was purchased from Cengal 2020 Sdn Bhd, the investment vehicle controlled by Radium managing director and major shareholder Gan Kah Siong.

Despite the disposal, Gan Kah Siong remains Radium's controlling shareholder with a combined 37.811% interest, comprising:

• 14.637% held directly.
• 23.173% held indirectly through Cengal 2020 Sdn Bhd.

The transaction therefore represents an internal share transfer within the Gan family rather than a change in overall control of the company.

Gan Family Continues to Hold Significant Ownership

Following the latest acquisition, several members of the Gan family remain substantial shareholders of Radium:

The concentrated ownership indicates that the company continues to be closely held by members of the founding family.

Relationship with Southern Score

Gan Yu Chai is also the managing director and major shareholder of Southern Score Builders Bhd, where he controls approximately 42.845% of the company.

Southern Score has secured multiple construction contracts from Radium over the years, including several related-party transactions disclosed to shareholders, reflecting the long-standing business relationship between the two companies.

At the close of trading on Friday:

• Radium Development's shares rose 0.97% to 52 sen, giving the company a market capitalisation of approximately RM1.79 billion.
• Southern Score's shares closed unchanged at 52 sen, with a market capitalisation of about RM1.18 billion.

Key Takeaways and Insights

This development provides several insights into corporate ownership and investment strategy:

• Crossing the 5% threshold is significant. Under Bursa Malaysia rules, investors who own 5% or more of a listed company become substantial shareholders and must disclose changes in their shareholdings, improving transparency for investors.
• The transaction does not alter control of Radium. Although Gan Yu Chai increased his stake significantly, the shares were acquired from his brother's investment vehicle, meaning effective control of the company remains within the Gan family.
• Family ownership remains a defining characteristic of Radium. The combined shareholdings of multiple family members provide stable long-term ownership and influence over the company's strategic direction.
• The relationship between Radium and Southern Score remains strategically important. With Gan Yu Chai holding leadership roles in Southern Score and a substantial stake in Radium, the close connection between the property developer and its construction partner is likely to continue, subject to regulatory requirements governing related-party transactions.
• Internal share restructuring can strengthen long-term ownership alignment. Transactions among founding shareholders often reflect succession planning, portfolio reallocation or long-term investment confidence rather than changes in business fundamentals.

Overall, Gan Yu Chai's emergence as a substantial shareholder reinforces the Gan family's strong ownership position in Radium Development while highlighting the continued strategic links between the property developer and Southern Score Builders.