T7 Global: We have not got any job from ECRL project
SERI KEMBANGAN: Country Heights Holdings Bhd (CHHB) is planning to raise RM1bil for its “war chest” to help fund four new major business ventures.
The loss-making property developer, known for its flagship Mines development, said it planned to raise funds for the projects either through direct borrowings or the issuance of bonds, or via strategic partnerships.
Executive chairman Tan Sri Lee Kim Yew said the new business ventures represented the group’s transformation and new direction, calling it “Country Heights 2.0”.
The new ventures include developing a wellness, anti-aging and aesthetics business, creating a “car city centre”, and building a trade and Islamic financial centre in Malacca, each with GDV of over RM1bil.
The other venture will be to restrategise its hospitality and resorts segment, by incorporating a wellness aspect.
Lee said the group was also confident of returning to profitability in the next 12 months, if they were able to secure the funds and execute their plans.
The funds, he said, would also be used for potential acquisitions and investments by the group.
Lee noted that while the company’s market capitalisation stood at RM385.7mil, its net tangible assets was about RM780mil and it only had about RM200mil in borrowings.
“We are transforming ourselves from being purely a property player – there is too much competition in this space,” he told a press conference yesterday. PETALING JAYA: T7 Global Bhd says the company has not received any contracts from the East Coast Rail Link (ECRL) project.
In a statement yesterday, the company said it “aspires” to participate in the ECRL project.
“T7 Global welcomes the price negotiation for the ECRL and aspires to participate in the project.
“As of today, there has not been any contracts awarded to T7 Global and we are still awaiting for the government to review the entire project,” it said.
It also pointed out that Tan Sri Vincent Tan was a passive investor in the company and that his divestment would not have any impact on its current business.
Yesterday, shares in T7 Global plunged more than 14% or seven sen to close at 42.5
Lee said he would be writing to the prime minister to secure a meeting and present their plans, and to share the challenges they faced in securing funding.
Lee had been embroiled in a battle with the Inland Revenue Board last year, leading to the seizure of RM126mil of his fixed deposits placed with a foreign-owned bank.
This was in relation to a tax liability of CHHB’s wholly owned subsidiary, Country Heights Sdn Bhd (CHSB).
In August 2017, Lee settled the tax liabili- sen, following the statement by Tan that he would be divesting his entire 5.29% stake in the company a day earlier.
Tan, who is Berjaya Food founder, 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.
T7 Global, formerly known as Tanjung Offshore Bhd, clarified that its core business was in the oil and gas (O&G) sector, which accounted for about 90% of its revenue.
“The group would like to reiterate that it is unaffected by the recent rumours and news, and is confident that its financial performance will continue to improve and grow through its core businesses in the O&G, aerospace, construction and infrastructure segments,” T7 Global 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 into 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.