Dnex to diversify into energy and power business

by **Cals** Fri 12 Dec 2014, 01:14

Dnex to diversify into energy and power business

By Gho Chee Yuan / theedgemarkets.com | December 11, 2014 : 6:59 PM MYT
KUALA LUMPUR (Dec 11): Information communication technology company Dagang Nexchange Bhd (DNex) is seeking to diversify into the energy and power generation business.
In a filing with Bursa Malaysia today, Dnex said it has entered into a share sale and purchase agreement (SPA) with the one of the directors of Forward Energy Sdn Bhd (FESB), Datuk Azmi Abdullah, for the proposed acquisition of 1.53 million shares in FESB for RM1.53 million.
The block of shares it plans to acquire represents 51% of the issued and paid up capital of FESB and that the acquisition will be fully funded by its internally generated funds, said DNex.
FESB has equity interests in various companies involved in power plant, engineering and energy related businesses, specially in the area of Independent Power Producer (IPP) in Malaysia and internationally.
It was incorporated in 2003 as a private limited company. Azmi is one of its directors, together with Datin Zarinah Md Shariff and Yap Jin Meng.
On completion of the proposed acquisition, DNex said FESB will become a 51% subsidiary of the group. The remaining 49% stake wil be hold by Azmi (10%), Zarinah (32%) and Yap (7%).
"Barring any unforeseen circumstances, the acquisition is expected to be completed by first quarter next year (2015)," it said.
Dnex said the proposed acquisition is expected to contribute positively to the group's future earnings but no effect of the earnings or net assets per share for the financial year ending Dec 31, 2014 (FY14).
Its counter slipped 1 sen or 3.77% to close at 25.5 sen today, giving it a market capitalisation of RM197.69 million.