RM1.5b oil project boost for Envair?

Kuala Lumpur: The new major shareholder of Envair Holdings Bhd is expected to inject an oil and gas project worth as much as US$500 million (RM1.51 billion) into the company, sources familiar with the matter said.


Business Times understands that the project is located in eastern Europe. In addition to the oil and gas contract, the
board of Envair is also expected to announce today a name change for the company to Raya Energy Bhd.

Envair, which makes air and water filters, has been in the limelight lately after Deepak Jaikishan emerged as a major shareholder in the company.

Deepak bought about 12.4 per cent of Envair via an off market deal in the last two weeks. He has also assumed the post of managing director of the company.

In a recent interview with Business Times, Deepak said that he was seeking to take control of Envair and inject some oil and business into the company.


Deepak said that he and parties aligned to him also intended to take up the entire 30 per cent placement block in Envair.
Envair announced to Bursa Malaysia last week that it was proposing a private placement of up to 35.57 million new shares, representing 30 per cent of its issued and paid-up capital.

The exercise is part of the firm’s plan to venture into the distribution and trading of oil and gas products. The shares will be placed out to Deepak, Envair directors Mohd Anuar Mohd Hanadzlah and Mohd Shukri Abdullah, as well as an independent
investor to be identified at a later date.

Based on the indicative issue price of 27.5 sen per placement share, the exercise will raise a gross proceed of up to RM9.78 million.