This article first appeared in The Edge Financial Daily on December 21, 2018

KUALA LUMPUR: Dagang Nexchange Bhd (DNeX) plans to sell its 51% stake in Forward Energy Sdn Bhd (FESB) to FESB managing director Datuk Azmi Abdullah for a nominal sum of RM1.

Azmi and his wife Datin Zarinah Md Shariff now have 42.33% in FESB, which is mainly in the independent power producer (IPP) business.

DNeX at the same time is acquiring a 100% interest in Forward Energy Generation Ltd (FEGL) from Labuan-incorporated Forward Energy Ltd for RM6.69 million. Part of the proceeds would be used to offset the RM11.01 million that is owed by FESB to DNeX.

FEGL owns 7.6% in a Bangladesh-based company involved in the development of an IPP, which commenced operations in November 2017.

DNeX said it wants to exit FESB, as the firm’s operating and other expenses amount to RM2 million annually. DNeX’s share price closed one sen or 4.76% lower at 20 sen with a market capitalisation of RM369.18 million.