Fast Energy Disposes Non Aligned Subsidiary For RM8 Million

Fast Energy is proposing to dispose of its 100% equity interest in Cape Technology Sdn Bhd (“CTSB”), comprising 500,000 ordinary shares in CTSB for consideration of RM8 million.

The group had entered into a conditional SSA with the purchaser for the proposed disposal of its entire equity interest in CTSB, together with all rights attaching to the equity and all assets, debts and creditors’ rights in connection with the equity, for a total cash consideration of RM8 million.

CTSB was incorporated in December 1996 as a private limited company under the Companies Act 1965. As of the latest practicable date prior to this announcement (“LPD”), the issued share capital of CTSB is RM500,000 comprising 500,000 ordinary shares. The company is principally involved in the manufacturing of mould cleaning rubber sheets and trading of epoxy encapsulant materials for optoelectronics industries. It commenced its business operations after its incorporation and its principal markets include Malaysia, Taiwan and China

The group added that the proposed disposal is in line with its objective of streamlining its businesses to focus on oil bunkering, marine oil trading and renewable energy segments, as well as to unlock the value and monetise the investment in CTSB, which is principally involved in manufacturing and trading of rubber mould cleaning products.

Fast Energy also said the business of CTSB is subject to risks that are inherent in the manufacturing industry. These include, adverse changes in supply and demand conditions, defect liability, fluctuation in the cost of raw materials, availability of labour, changes in regulation and policies governing the manufacturing industry, downturns in regional and/ or national economies and changes in business and credit conditions.

In early January 2021, Fast Energy Group diversified its principal activities to include oil bunkering and related activities. Since the diversification, the oil bunkering, marine oil trading and renewable energy business have overtaken the mould cleaning rubber sheets segment as the main revenue contributor to the Group.

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