PETALING JAYA: T7 Global Bhd is taking full control of its subsidiary T7 Wenmax Sdn Bhd for RM39.2mil cash, a deal that will see the company lock in a RM400mil order book.
“T7 Wenmax has a total of 17 active and ongoing projects, and has an outstanding order book of RM400mil, which can sustain its business for four years.
“In view of the above, the board is optimistic of the financial performance of T7 Wenmax in the near future, ” T7 Global said.
In a filing with Bursa Malaysia yesterday, T7 Global said its unit T7 Gasetc Sdn Bhd, which has a 51% stake in T7 Wenmax, has proposed to buy the remaining 49%.
T7 Global said that T7 Wenmax has been contributing substantially to its earnings over the past three financial years up to Dec 31,2019 (FY19).
It said that upon completion of the proposed acquisition, T7 Wenmax will become a unit of T7 Gastec, which will fully recognise profit contribution from T7 Wenmax.
T7 Wenmax is a licensed Petroliam Nasional Bhd (Petronas) dealer, which allows it to supply its products to the national oil company and its subsidiaries.
“In view of the ongoing contracts of T7 Wenmax and the positive prospect of T7 Wenmax in the near term, the group feels the proposed acquisition will enable it to have full control over the business operations of T7 Wenmax, and to fully recognise its earnings. This may potentially increase the net profit of the group, which plans to expand its offerings across oil and gas industry with a wider range of products, ” T7 Global said.
For FY19, T7 Global said it recognised RM7.72mil profit after tax or 1.5 sen earnings per share from T7 Wenmax.
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