Vincent Tan selling stake in T7 Global amid controversy over the ECRL project

PETALING JAYA: A month after emerging as a substantial shareholder in T7 Global Bhd, Tan Sri Vincent Tan has announced his plan to exit the offshore oilfield service provider in light of the recent controversy over the East Coast Rail Link (ECRL) project.

In a statement yesterday, the tycoon said he would be divesting his entire 5.29% stake in T7 Global, which was also a contractor for the ECRL.

He said the disposal of all his shares, which started on Monday, would be completed “in due course”.

The tycoon said he was divesting 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’s emergence in T7 Global received public attention recently, following the recent statement by Prime Minister Tun Dr Mahathir Mohamad that the government would proceed with the ECRL if it can obtain more favourable terms through renegotiation.

The government had said earlier that the mega project might be cancelled, given its high cost.

Tan, who is Berjaya Group founder, was long considered an ally of Dr Mahathir who had benefited during the latter’s first stint as premier.

But the tycoon has refuted any allegations related to cronyism on the part of the government and Dr Mahathir.

Tan said he had acquired his stake in T7 Global as he was acquainted with the major shareholder of the company, and more importantly, as a long-term investment in the oil and gas services industry as T7 Global was well-positioned in this sector.

“I had no knowledge that T7 Global was one of the contractors for the ECRL project when I purchased shares in the company,” he said.

“Despite clarifications by the Prime Minster and Finance Minister, scurrilous and baseless allegations of impropriety still seem to be making their rounds in the news and social media.

“I believe these news reports and social media comments are intended to embarrass me and the new government in Putrajaya.

“As such, I have decided to divest my entire stake in T7 Global.

“I have, in fact, already started disposing some of my shares in T7 Global as of Monday and I intend to dispose of all of my shares in the company in due course. I hope this will put an end to any further controversy on this issue,” Tan said.

Tan emerged as a substantial shareholder in T7 Global on May 15, following the acquisition of 21 million shares via direct business transactions or a 5.03% stake in the company.

On May 21, he acquired a further 1.2 million shares in the open market, upping his stake to 22.2 million shares or 5.29%.

His entry in T7 Global came about barely a week after the electoral victory of Pakatan Harapan, which had promised to review the country’s mega infrastructure projects, including the ECRL.

Further dispelling rumours surrounding him, he added that there was no truth to reports that he had invested in a financial startup developing a trading platform called Bitcoin Formula, or that he would be donating RM525mil to Tabung Harapan Malaysia.

Shares in T7 Global slid half a sen or 1% to 49.5 sen at yesterday’s close, with 9.5 million shares changing hands.

The day before, its shares had soared to a high of 56.5 sen. T7 Global hit its 52-week high of 66.5 sen on Feb 2, subsequently hitting its 52-week low of 30 sen on May 14.

T7 Global will be embarking on an upcoming 20% placement exercise, as well as a proposed diversification of its existing principal activities to include manufacturing and treatment of aerospace parts.