KUALA LUMPUR (April 25): Key Alliance Group Bhd's (KL:KGROUP) executive chairman Datuk Wira Farhash Wafa Salvador has emerged as a substantial shareholder in the loss-making company.

In a bourse filing, the IT services and technology provider said Farhash acquired 6.8 million shares in Key Alliance through an open market transaction on Friday. The shares represent a 5.55% stake, surpassing the 5% threshold needed to be classified as a substantial shareholder.

The purchase price was 29.26 sen per share, according to the filing. At this price, the entire transaction is worth RM1.99 million.

Key Alliance shares closed at 30 sen on Friday, up 1.5 sen or 5.3% from Thursday, valuing the company at RM36.8 million.

Farhash, a former political aide to Prime Minister Datuk Seri Anwar Ibrahim and ex-PKR Perak chief, was appointed as executive chairman of Key Alliance on January 28.  The company has been without a chairman since the resignation of former independent non-executive chairman Datuk Zaidi Mat Isa @ Hashim in September 2023.

Roy Ho Yew Kee, the largest shareholder of Key Alliance with a 6.17% stake, had been redesignated as executive director from managing director in April 2024.

Farhash currently holds directorships in four other public-listed companies, namely MMAG Holdings Bhd (KL:MMAG), Apex Equity Holdings Bhd (KL:APEX), Excel Force MSC Bhd (KL:EFORCE) and 7-Eleven Malaysia Holdings Bhd (KL:SEM).

Farhash has been active in the market. In March, he emerged as MMAG's largest shareholder after acquiring 462 million shares or a 20% stake worth RM184.4 million.

Key Alliance has been in the red since the financial year ended March 31, 2022 (FY2022), when it posted a net loss of RM47.35 million.

For the third quarter ended Dec 31, 2024 (3QFY2025), Key Alliance posted a wider net loss of RM4.64 million versus RM3.31 million a year earlier, as revenue plummeted 64.56% to RM2.52 million from RM7.13 million.

Its accumulated losses stood at RM105.69 million as at end-December 2024.

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