Mega Fortris Bhd said its major shareholders obtained a court order to investigate share trades from March, in response to a query from Bursa Malaysia about a sell-off that erased more than RM1 billion in value.
The security seals manufacturer reported that its non-independent non-executive chairman, Datuk Ng Meng Kee, and substantial shareholder Mega Fortris Global Pte Ltd, secured the order against Affin Hwang Nominees Tempatan Sdn Bhd. The company stated it could not determine if the court order was linked to the sharp drop in its share price.
Mega Fortris also said it was unaware of any undisclosed corporate developments or rumors that could explain the trading activity. It did not specify when the court action began or when the order was granted.
Court Order Details
Under the order, Affin Hwang Nominees are required to produce documents detailing its legal and commercial relationship with Safari Asia Ltd, as well as records of transactions involving Mega Fortris shares held in custody for Safari Asia, specifically five transactions between March 25 and March 31, 2026.
According to Bloomberg data, Mega Fortris’ shares fell to 76.4 sen on March 27, 2026, from RM1.03 on March 25, 2026. They recovered to RM1.06 by March 31, 2026. An average of 23 million shares were traded during that period.
The five transactions involved 17.74 million shares. These were part of the 42 million Mega Fortris shares held by Affin Hwang Nominees for Safari Asia, which acted for Brookland Group & Partners Ltd. The 42 million shares are just under the 5% threshold for a substantial shareholding.
Company Response
The documents must be made available to Ng and Mega Fortris Global, or their solicitors, for inspection and copying within 21 days of the court order being served. Mega Fortris stressed that the court order only concerned the disclosure of documents and information,
The company has not been informed of any results or findings from the exercise. As a result, the board cannot currently determine if the matters in the court order are related to or explain the trading activity, as stated in the filing.
Ng has a 1.828% direct stake in Mega Fortris. He also holds a 65.041% indirect stake through Mega Fortris Global and his son, Aaron Mikhel Ng Khye Weng.
Market Impact
The clarification comes after a two-day rout that wiped out more than RM1 billion in market capitalisation. The stock fell from RM3.45 on Wednesday to RM2.22 on Friday. It dropped 71 sen or 20.6% on Thursday to RM2.74, then fell another 52 sen or 19% on Friday to RM2.22.
On Friday, the stock opened at RM3, then dropped to an intraday low of RM2.07, leading Bursa Malaysia to issue a query about unusual market activity (UMA). Short selling was suspended for the second day, with trading set to resume on Monday.
Before the sell-off, Mega Fortris had been rising steadily, starting the year at 87.4 sen and reaching a record high of RM3.48 on Thursday morning. This decline coincided with a similar drop in GIIB Holdings Bhd, another company linked to Ng, where he holds about 15% interest.
GIIB, a rubber compounds manufacturer, also received a UMA query after its shares fell 23.9% on Thursday and another 33.3% on Friday, closing at 36 sen. The two-day sell-off reduced GIIB’s market value by RM289 million.
