KUALA LUMPUR, June 27 — T7 Global Bhd clarified that its current and future core businesses and operations in oil and gas (O&G), aerospace and construction, and infrastructure are fully intact despite the recent news about the group’s substantial shareholder, Tan Sri Vincent Tan Chee Yioun.
In a Bursa Malaysia statement today, the group stated that Tan is a 'passive investor'.
“The group understands the reason for Tan Sri Vincent Tan’s recent departure as an investor of T7 Global and is confident that it will not have any impact on the group’s business or financial performance,” it said.
The group added that it welcomes the price renegotiation for the ECRL project and aspires to participate in the ECRL project.
“As of today, there has not been any contracts awarded to T7 Global and we are still awaiting for the government’s review on the entire project,” it said.
Currently, T7 Global's core business is still in the O&G industry, accounting for 90 per cent of the group’s total revenue. It diversified into the aerospace business in 2017 and made its way into the construction and infrastructure business in early 2018.
The aerospace, construction and infrastructure segments represent the group’s efforts to diversify its revenue streams and to grow its top and bottom line potential.
As for the construction of the metal treatment plant for the aerospace business, it is targeted to be completed by the end of 2018 and T7 Global is confident that this segment will be able to contribute to the its revenue and earnings in 2019.
Yesterday, Tan, a conglomerate Berjaya Corp Bhd founder and executive chairman, after revelations of his being a substantial shareholder of T7 Global Bhd last month, plans to divest his entire stake in the offshore oilfield service provider.
The tycoon disclosed this in a statement yesterday, which was issued to clarify his position and refute any allegations, or suggestions of impropriety, or cronyism on the part of the government and Prime Minister Tun Dr Mahathir Mohamad.
The clarification was in response to several news and social media articles linking his recent purchase of 21 million shares, comprising a 5.04 per cent stake in T7 Global with the controversial East Coast Rail Link (ECRL) project.
At a market close today, T7 Global share price slipped 7 cent or 14.14 per cent to 42 sen.
