Techna-X to inject 100% of energy storage business into Singapore's Chaswood for S$678.57mil


KUALA LUMPUR: Techna-X Bhd has signed a sale and purchase agreement with SGX-listed Chaswood Resources Holdings Ltd (CRHL) to inject 100 per cent of its energy storage business - HK Aerospace Beidou New Energy Technology Co Ltd (HKAB) - into CRHL for S$678.57 million (S$1=RM3.08).

Techna-X is HKAB's largest shareholder.

Under the agreement, the company, formerly known as Sino Hua-An International Bhd, said in a statement that purchaser CRHL "shall allot and issue new fully-paid up ordinary shares in its capital at a pre-consolidation issue price of 3.8 cents, of which 50 per cent goes to Techna-X and the other 50 per cent to the HKAB’s remaining owners,” namely Wan Muhamad Hasni Wan Sulaiman, Nong You Hua and Satriya Suetoh.

"Completion of the exercise will unlock RM1 billion potential value for Techna-X and result in a reverse takeover (RTO) where Techna-X will own 48 per cent of CRHL with the balance being owned by the other vendors of HKAB and CRHL’s existing shareholders.

"HKAB will be renamed Techna Energy Storage Systems (TESS) to better reflect its business operations under the group,” Techna-X said in the statement.

HKAB currently has an existing order book of approximately US$300 million. Techna-X plans to expand to ASEAN, Europe, and the Middle East.

Techna-X executive director Datuk Jared Lim said among the market segments that the group will serve are electric vehicle makers, energy storage and e-machineries in agriculture, public transport electrification of rail transport, and military applications.

"We anticipate the growth in demand for our products to be exponential in the coming years as several potential parties have sought us out for collaborations and some have been requesting for our prototypes and proof of concept to test for efficiencies and compatibilities.

"More contracts are expected in the coming year,” he said.

Lim said the capital requirement for the immediate term over the next two years will be about US$50 million and "the RTO exercise would enable the group to tap into the capital markets via SGX and allow it to raise its own capital which is needed to accelerate expansion and research and development plans.”

Techna-X said HKAB will focus expansion on its existing factory in Wuzhou, China to raise capacity and specialised equipment. It plans to set up a new battery production factory in Qinzhou, China.

"For 2022, the group is looking to convert a section of the factory into research labs for developing and testing various products and technologies and to install large scale computing and data facilities.

"Over the next three years, TESS will focus on core research work, specialising in industrial applications such as e-train and e-boats and the development of material science for energy storage,” it added. - Bernama
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