T7 Global share price down on Vincent Tan’s move

By MARK RAO / Pic By TMR File

T7 GLOBAL Bhd’s share price tumbled 14.14%, or seven sen, after Tan Sri Vincent Tan Chee Yioun (picture) announced he will be divesting his interest in the company after coming under criticism in news and social media.

Tan emerged as a substantial shareholder in T7 Global with 22.2 million shares, or a 5.29% shareholding, last month.

The company is eyeing a role in the 668km East Coast Rail Link (ECRL) project, which the Pakatan Harapan led federal government said will be reassessed to lower the total cost.

Tan came to prominence under Tun Dr Mahathir Mohamad’s 22-year reign as the prime minister from 1981 to 2003.

He refuted the allegation of cronyism after his emergence as a shareholder in T7 Global, and said yesterday he has started to sell his stake in the company. The Berjaya Corp Bhd founder has sold 3.68 million shares on Monday and thus ceased to be a substantial shareholder, according to an exchange filing by T7 Global yesterday.

“I hope this will put an end to any further controversy on this issue,” he said in a statement released on Tuesday.

“I believe these news reports and social media comments are intended to embarrass me and the new government in Putrajaya.”

T7 Global’s share price closed at 42.5 sen yesterday, with 12.2 million shares exchanging hands.

The oil and gas (O&G) service provider saw its counter jumping 22.6% to close 9.5 sen higher at 51.5 sen on Monday on news that the ECRL could be revived if better terms and pricing are secured for the RM55 billion project.

T7 Global is primarily involved in the O&G service sector, with over 90% of its revenue derived from the business. It is also engaged in infrastructure development via its wholly owned unit, T7 Property Sdn Bhd, and is making forays into the aerospace sector as well.

In March this year, T7 Global inked a memorandum of understanding with Terengganu state-controlled Eastern Pacific Industrial Corp Bhd and CMC Engineering Sdn Bhd to bid for work contract on the ECRL portion in Terengganu.

“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,” the company noted.