KUALA LUMPUR (June 27): T7 Global Bhd, which saw its shares fall as much as 14.3% today, said it is confident that tycoon Tan Sri Vincent Tan Chee Yioun’s decision to exit as a major shareholder of the group will not have any impact on the group’s business or financial performance.

In a statement today, T7 said it "understands the reason" for Tan’s recent departure as an investor of the group.

“The group would like to clarify that Tan Sri Vincent Tan's entry into T7 is on the basis of a passive investor due to the group’s well-positioned business in the oil and gas (O&G) services industry," it added.

Perturbed by what he deems as “mischievous” and “sinister” news reports linking his 5.04% stake in T7 with the controversial East Coast Rail Link (ECRL) project, the tycoon announced yesterday that he will dispose of all his T7 shares in due course.

“I hope this will put an end to any further controversy over this issue,” Tan said.

A filing with Bursa Malaysia today showed that Tan has ceased to be a substantial shareholder in the group following the disposal of 3.68 million shares in T7 via a direct business transaction.

T7 said the group’s current and future core businesses and operations in the O&G, aerospace and construction, as well as infrastructure are fully intact and is unaffected by the recent news.

"The group would like to reiterate that it is unaffected by the recent rumours and news, and is confident that its financial performance will continue to improve and grow through its core businesses in the O&G, aerospace, construction and infrastructure segments.

"T7 (also) welcomes the price renegotiation for the ECRL project and aspires to participate in the ECRL project. As of today, there has not been any contracts awarded to T7 Global and we are still awaiting for the government’s review on the entire project," it added.

T7 also said the aerospace, construction and infrastructure segments represent the group’s efforts to diversify its revenue streams and to grow its top and bottom line potential.

"The construction of the metal treatment plant for the aerospace business is targeted to be completed by the end of 2018 and the group is confident that this segment will be able to contribute to revenue and earnings in 2019," it added.

At closing, shares in T7 closed 7 sen or 14.14% lower at 42.5 sen, with 12.2 million shares crossed, valuing it at RM180.37 million.