by TMR

T7 Global Bhd has proposed to diversify its business into aerospace industry to enhance its earnings stream while reducing the dependency on the oil and gas sector.

It told Bursa Malaysia yesterday, the new venture was based on the positive outlook for the aerospace industry.

“The company sees the new business as a favourable investment for the group weighing on the efforts by the government to promote the aerospace industry such as the implementation of Malaysian Aerospace Industry Blueprint 2030 launched in 2015 and the formation of the National Aerospace Industry Coordinating Office,” it noted.

The proposed diversification enables the company to generate additional income while improving the company’s consolidated earnings when the new business commenced. 

T7 also plans to place out 92.28 million new shares, representing 20% of the issued shares, to partially fund its diversified business that includes setting up a specialised metal treatment plant in UMW High-Value Manufacturing Park in Serendah, Selangor.

Based on the issue price of 42 sen per placement share, it is expected to raise gross proceeds of up to RM39.68 million.

The company also proposed a share buy-back of up to 10% of issued shares to stabilise the supply and demand of the company’s shares traded on the local bourse.