KUALA LUMPUR: Information and communications technology company Dagang Nexchange Bhd (DNex) is seeking to diversify into the energy and power generation business.
In a filing with Bursa Malaysia yesterday, DNex said it has entered into a share sale and purchase agreement (SPA) with 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 represents 51% of the issued and paid-up capital of FESB and the acquisition will be fully funded by internally generated funds, said DNex. FESB has equity interests in companies involved in power plants, engineering and energy-related businesses, especially in independent power production 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, FESB will become a 51% subsidiary of DNex. The remaining 49% stake will be held by Azmi (10%), Zarinah (32%) and Yap (7%).
“The acquisition is expected to be completed by the first quarter next year,” DNex said.
Dnex said the proposed acquisition is expected to contribute positively to the group’s future earnings but will have no effect on the earnings or net assets per share for the financial year ending Dec 31, 2014.
This article first appeared in The Edge Financial Daily, on December 12, 2014.