Dagang NeXchange (TIME Eng) enters oil/gas sector

by **Cals** Thu 19 Jun 2014, 03:17

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Wednesday, 18 June 2014 19:41

KUALA LUMPUR (June 18): Dagang NeXchange Berhad (DNeX, formerly TIME Engineering Bhd) said it is acquiring OGPC Group to enter the oil and gas industry.

In a statement, DNeX said it is buying OGPC Sdn Bhd and OGPC O&G Sdn Bhd (collectively OGPC Group), which is a provider of equipment and services for oil and gas, petrochemical and power industries.

DNeX has proposed to buy OGPC Group for RM203 million, via cash of RM100 million and shares/warrants.

The RM100 million cash will be derived from a proposed rights issue, share issue and/or internal funds, and the remaining RM103 million will be satisfied via issuance of 396,153,846 DNeX shares at RM0.26 per share together with 198,076,923 free warrants.

“The acquisition of OGPC Group is aimed to deliver not only diversification but enrichment to DNeX’s existing business, and DNeX is geared to make inroads and tap opportunities in the oil and gas industry,” said the company in the statement.

“OGPC Group will serve as a platform for DNeX to jumpstart its venture in the industry with OGPC Group’s highly positive performance in recent years.”

The company said revenue derived from the oil and gas industry is expected to contribute positively to DNeX’s bottomline in future years.

The exercise is expected to be completed in the first quarter of 2015.

DNeX also announced the appointment of Zainal Abidin Abd Jalil as the company’s group managing director with effect from tomorrow.

Zainal was chief executive officer of Malakoff Corporation Berhad. He had also served ExxonMobil for 28 years in various managerial and leadership capacities worldwide.

Dagang NeXchange Berhad is a leading provider of e-commerce services for trade facilitation and internationally certified enterprise security services.