ETITECH (0118) - ETI Tech non-committal on RTO, expects to turn around in 2015
Posted on 23 May 2014 - 05:39am
PETALING JAYA: Loss-making ETI Tech Corp Bhd, which was non-committal on a possible reverse takeover (RTO) plan involving it, has appointed two new directors, with hopes of turning around the company next year by diversifying into the construction sector.
ETI Tech shares, one of the most active counters yesterday, closed down 12.5% to 10.5 sen, with some 83.5 million shares changing hands despite a report that the company is a RTO target for construction firm Zenith Construction Sdn Bhd, a shareholder of joint venture company Consortium Zenith BUCG Sdn Bhd (CZ) .
Newly appointed executive director Zarul Ikhwan Zarul Ahmad (pix), who is the son of CZ chairman Datuk Zarul Ahmad Zulkifli, explained that the company which secured its first construction job on Wednesday, hopes to secure more construction projects in a move to diversify its businesses.On Wednesday, ETI Tech announced the award of a RM70 million housing contract Alor Star, Kedah. The company is currently in battery manufacturing.
Zarul Ikhwan declined to comment on reports that ETI Tech is a reverse takeover target for Zenith Construction, one of the joint venture partners of CZ. He also said he is unaware of whether Zenith Construction intends to buy a stake in the company.
ETI Tech recorded a net loss of RM781,000 for the fourth quarter ended Feb 28, 2014. It made a full year net loss of RM9.7 million.Datuk Mohamad Amin Mohamad Salleh was also appointed to the board yesterday, as an independent director.
Zarul Ikhwan said ETI Tech is open to all types of construction projects including building and road but has yet to bid for any projects.
He said it aims to grow the construction business bigger than its current core business which is in solar and battery manufacturing. It is also interested to expand overseas.
On whether more people from CZ will join ETI Tech's board, Zarul said it is "too soon to tell" but the senior Zarul's involvement in projects in Penang may help ETI Tech secure construction projects in Penang.
ETI Tech executive director Datuk Lawrence Chang said the company may consider a private placement or the entry of new investors to fund its newly awarded construction job, but denied that it was already in talks with any party for such an exercise.
"We're looking more into property projects, building construction. Hopefully ETI Tech will be one of the project management companies maybe in Penang as well, in order for us to secure sites in Penang."
CZ was awarded the RM6.3 billion Penang undersea tunnel infrastructure project by the state government in March 2013.
"At the moment we're not involved in the undersea tunnel project. I will try to work with the board members of Zenith group to see if we could actually be part of the project, especially the tunnel. We hope to be part of the project.
"Since we're a technology-based company, we're looking more into that particular side. In terms of business-wise and project-wise, it is yet to be confirmed," said Zarul Ikhwan.
Earlier in March, another loss-making company Astral Supreme Bhd which is in a joint venture with Zenith PMC Sdn Bhd, appointed Datuk Eddie Chai Woon Chet as its executive director, with similar plans to turnaround its business by diversifying into construction.
Its subsidiary Astral Supreme Construction Sdn Bhd secured construction projects under the People's Housing Programme in Malacca.
http://www.thesundaily.my
Posted on 23 May 2014 - 05:39am
PETALING JAYA: Loss-making ETI Tech Corp Bhd, which was non-committal on a possible reverse takeover (RTO) plan involving it, has appointed two new directors, with hopes of turning around the company next year by diversifying into the construction sector.
ETI Tech shares, one of the most active counters yesterday, closed down 12.5% to 10.5 sen, with some 83.5 million shares changing hands despite a report that the company is a RTO target for construction firm Zenith Construction Sdn Bhd, a shareholder of joint venture company Consortium Zenith BUCG Sdn Bhd (CZ) .
Newly appointed executive director Zarul Ikhwan Zarul Ahmad (pix), who is the son of CZ chairman Datuk Zarul Ahmad Zulkifli, explained that the company which secured its first construction job on Wednesday, hopes to secure more construction projects in a move to diversify its businesses.On Wednesday, ETI Tech announced the award of a RM70 million housing contract Alor Star, Kedah. The company is currently in battery manufacturing.
Zarul Ikhwan declined to comment on reports that ETI Tech is a reverse takeover target for Zenith Construction, one of the joint venture partners of CZ. He also said he is unaware of whether Zenith Construction intends to buy a stake in the company.
ETI Tech recorded a net loss of RM781,000 for the fourth quarter ended Feb 28, 2014. It made a full year net loss of RM9.7 million.Datuk Mohamad Amin Mohamad Salleh was also appointed to the board yesterday, as an independent director.
Zarul Ikhwan said ETI Tech is open to all types of construction projects including building and road but has yet to bid for any projects.
He said it aims to grow the construction business bigger than its current core business which is in solar and battery manufacturing. It is also interested to expand overseas.
On whether more people from CZ will join ETI Tech's board, Zarul said it is "too soon to tell" but the senior Zarul's involvement in projects in Penang may help ETI Tech secure construction projects in Penang.
ETI Tech executive director Datuk Lawrence Chang said the company may consider a private placement or the entry of new investors to fund its newly awarded construction job, but denied that it was already in talks with any party for such an exercise.
"We're looking more into property projects, building construction. Hopefully ETI Tech will be one of the project management companies maybe in Penang as well, in order for us to secure sites in Penang."
CZ was awarded the RM6.3 billion Penang undersea tunnel infrastructure project by the state government in March 2013.
"At the moment we're not involved in the undersea tunnel project. I will try to work with the board members of Zenith group to see if we could actually be part of the project, especially the tunnel. We hope to be part of the project.
"Since we're a technology-based company, we're looking more into that particular side. In terms of business-wise and project-wise, it is yet to be confirmed," said Zarul Ikhwan.
Earlier in March, another loss-making company Astral Supreme Bhd which is in a joint venture with Zenith PMC Sdn Bhd, appointed Datuk Eddie Chai Woon Chet as its executive director, with similar plans to turnaround its business by diversifying into construction.
Its subsidiary Astral Supreme Construction Sdn Bhd secured construction projects under the People's Housing Programme in Malacca.
http://www.thesundaily.my
