We are unperturbed by Vincent Tan's departure, says T7

Offshore oilfield service provider T7 Global Bhd says that it is unaffected by tycoon Vincent Tan wanting to divest his entire stake in the company.

In a "clarification" statement issued today, the group – a contractor for the East Coast Rail Line (ECRL) project – stressed that its current and future core businesses would not be impacted by Tan’s departure.

"The group would like to clarify that Tan's entry into T7 Global is on the basis of a passive investor due to the group’s well-positioned business in the O&G services industry.

"The group understands the reason for his recent departure as an investor of T7 Global and is confident that it will not have any impact on the group’s business or financial performance.

"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 oil and gas, aerospace, construction and infrastructure segments,” read the statement.

No ECRL contracts

The group also said that to date, it had not received any ECRL contracts, but noted that it welcomed the price renegotiation by Putrajaya and aspires to be part of the project.

It was reported yesterday that Tan, the executive chairperson of Berjaya Corporation Bhd, was planning to sell his 5.04 percent stake in T7.

The divestment, Tan said, was to refute suggestions of any impropriety or cronyism on the part of the government and Prime Minister Dr Mahathir Mohamad.

This decision was undertaken in response to certain reports which he claimed had mischievously tried to link his acquisition of the stake in T7 to Putrajaya's decision to proceed with the ECRL project pending a renegotiation of terms.

According to T7 Global's filings with Bursa Malaysia, Tan acquired 21 million shares in the company via direct business transactions on May 15, and a further 1.2 million shares in the open market on May 21, lifting his stake to 22.2 million shares or 5.29 percent.

Mahathir had also categorically denied claims that his government decided against scrapping the ECRL because “his friend Vincent Tan” held a stake in it. - Mkini