KUALA LUMPUR: T7 Global Bhd is taking full control of T7 Wenmax Sdn Bhd in a RM39.20mil deal which will enable it to recognise full profit contribution from the latter which has an order book of about RM400mil.
T7 Global said on Tuesday its unit T7 Gasetc Sdn Bhd, which owns 51% stake in T7 Wenmax, had proposed to acquire the remaining 49% stake in the latter, from Megaxus Resources Sdn Bhd.
“The estimated total order book of T7 Wenmax as at the latest practicable date (LPD) stood at approximately RM400mil, which is able to sustain its business operations for approximately four years, ” it said.
It said upon completion of the proposed Acquisition, T7 Wenmax will become a unit of T7 Gastec, which will recognise full profit contribution from T7 Wenmax moving forward.
T7 Wenmax is a licensed Petroliam Nasional Bhd (Petronas) vendor, which allows it to supply its products to Petronas group of companies for its oil and gas projects.
Additionally, T7 Wenmax has exclusive partnerships with reputable technology companies and offers a wider range of specialist products solutions, which include, amongst others, offshore loading discharge marine hoses, integrated custody metering systems, process packages, sand management systems and valve safety systems across the oil & gas, oleo-chemical, marine, petrochemical and general industries.
At present, the customers of T7 Wenmax mainly comprise of organisations operating in oil and gas industry based in Malaysia only.
“As at the LPD, T7 Wenmax has 17 active and on-going projects with an estimated aggregate contract value of approximately RM599mil, ” it said.
Based on the past three financial years up to the FYE Dec 31,2019, T7 Wenmax recorded revenue of RM63.05mil; RM64.90mil and RM62.77mil respectively.
T7 Wenmax had also, over the past three financial years up to the FYE Dec 31,2019, recorded profit after tax of RM7.90mil; RM7.26mil and RM10.36mil.
For the past three audited financial years up to FY ended Dec 31,2019, the revenue and profit after tax attributable to owners of the company (PAT) contributions of T7 Wenmax to T7 and its subsidiaries are as follows:
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