UK-based investment bank eyes Envair stake

SHAH ALAM: Zai Corporate Finance Ltd (ZAICF), a London-based investment banking firm and a licensed nominated adviser, is eyeing a 30 per cent stake in Envair Holdings Bhd.


According to information obtained from its website, ZAICF had previously advised some major global firms such as Sime Darby Bhd, Singapore's Temasek, Hays plc and the World Bank.

"Our company intends to subscribe for up to 30 per cent of the new ordinary shares in Envair being offered at the market issue price," R.J Zimmerman, a director at ZAICF wrote in a letter to Envair.

At a press conference held in Envair's corporate office yesterday, Mohd Anuar Mohd Hanadzlah said he believes the offer could be related to the company's plans to venture into the oil and gas business.

About two weeks ago, Envair signed a joint marketing agreement with Resscom Petroleum Sdn Bhd which has a licence from national oil company Petronas to procure diesel and other oil and gas lubricants.

Mohd Anuar, who is the brother of the Second Finance Minister Datuk Ahmad Husni Mohd Hanadzlah, was appointed exe-cutive director of the company in late July.

His appointment has stirred interest in the company as investors bet that his arrival and the plans to venture into the oil and gas business will help lift Envair's otherwise gloomy outlook.

"I have the experience and connections worldwide ... that is why we are moving into the oil and gas business, which is a very lucrative business," said Mohd Anuar.

Since his appointment, Envair shares have rallied by slightly more that 200 per cent to close at 38.5 sen yesterday.

For the past four financial years, Envair had bled red ink, though this year, it started to cut the losses.

For the six months ended June 30 2011, Envair's net loss stood at RM816,000 versus RM1.55 million in the same period a year ago.

Still, the company has very little debt, with total debts standing just below the RM7 million mark.

Based on its latest unaudited accounts, Envair has only about RM22,000 cash in the bank, and the company had paid RM288,000 as interest to banks to service its loans.

A 30 per cent placement could raise just under RM10 million for the company, though Mohd Anuar said that a cash injection via a share sale is not critical for Envair's expansion plans.

"Being in the oil and gas industry should help us return to the black in the next financial year," he said, adding that the company's focus will be in trading oil.

Envair already has a letter of intent from a China-based party to supply some two million barrels of oil a month.

22k cash in the bank

ESH wrote:22k cash in the bank [You must be registered and logged in to see this image.]

so little.....wonder how they goreng up [You must be registered and logged in to see this image.]

phoenix wrote:

ESH wrote:22k cash in the bank [You must be registered and logged in to see this image.]

so little.....wonder how they goreng up [You must be registered and logged in to see this image.]

but I guess like this Monday morning people goreng some more