SHAH ALAM (Oct 10): Merge Energy Bhd's shareholders have given their nod for its proposed diversification into the property sector at the group's extraordinary general meeting (EGM) today.

The company saw its shareholders unanimously voting to pass all of its resolutions at the meeting, which comprise the disposal of several non-core assets, its maiden property development project at Pasir Panjang, Negeri Sembilan, and the diversification of its business.

Several special resolutions were also passed, which included a proposed change of company name to Stella Holdings Bhd and the proposed reduction of the group's share capital to offset its accumulated losses.

Merge Energy executive chairman Datuk Mohamad Haslah Mohamad Amin said the group is now on better financial footing, as the new shareholders of the group have successfully cleaned up the company's operations over the past six months.

"We have now wiped out the losses, putting the company on a better financial footing. What is important is that now we have identified three core businesses to focus on — the water infrastructure segment, oil and gas (O&G) and now property.

"We are positive that the company would be seeing positive numbers within FY20," he told theedgemarkets.com following the group's EGM today.

The takeover of the company saw several key people linked to property developer Matrix Concepts Holdings Bhd taking control of the group.

Mohamad Haslah, who is also the non-executive chairman of Matrix Concepts, was one of the three ultimate offerors in the takeover of Merge Energy. He holds a 6.61% stake in the company via Anjuran Utama Sdn Bhd.

The takeover also saw the entry of Datuk Lee Tian Hock, the founder and executive deputy chairman of Matrix Concepts, who was appointed as non-independent and non-executive director with a 33.5% stake.

Merge Energy was untraded as at the noon market break today. The counter was last traded at 91 sen, giving a market capitalisation of RM60.97 million.