T7 Global says Vincent Tan's exit won't impact business

Tan Sri Vincent Tan will reimburse the 2,600 Cardiff fans for the away fixture postponement against Derby County.

KUALA LUMPUR: T7 Global Bhd says billionaire Tan Sri Vincent Tan Chee Yioun's decision to exit his investment in the oil and gas services provider will not have any impact on its business or financial performance.

The company, which was formerly known as Tanjung Offshore Bhd, pointed out that Tan's entry into T7 Global was on the basis of a passive investor due to its well-positioned business in the O&G services industry.

“The group’s current and future core businesses and operations in the O&G, aerospace and construction as well as infrastructure are fully intact and is unaffected by the recent news,” it said.

On Tuesday, Tan said in light of the recent controversy over the East Coast Rail Line (ECRL) project, he was selling his stake in the company to distance himself from reports that his interest in the company may be linked to the new government's decision not to cancel the project. 

Tan explained that his acquisition of a stake in T7 Global was because the company was well positioned in the oil and gas services industry, and he was acquainted with the major shareholder of the company.

"I had no knowledge that T7 Global is one of the contractors for the ECRL project when I purchased shares in the company," he added. 

Meanwhile, T7 Global welcomed the price renegotiation for the ECRL project and hoped to take part.  

“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.

T& Global said currently, its core business was still in the O&G industry and accounted for 90% of the group’s total revenue. 

“The group 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.

“The construction of the metal treatment plant for the aerospace business is targeted to be completed by the end of 2018 and the group is confident that this segment will be able to contribute to the Group’s revenue and earnings in 2019,” it said.