DNeX is geared to make inroads and tap opportunities in the oil and gas industry by leveraging on OGPC Group’s strengths and experience in the industry.
On a related development, the Board of DNeX is also pleased to announce the appointment of Zainal Abidin Abd Jalil as the Company’s Group Managing Director with effect from 19 June 2014. With a wealth of experience in managing businesses and operations in high- technology, and capital-intensive upstream oil and gas industry, and power generation utilities, Zainal will drive DNeX’s move into the oil and gas industry.
Appoints Group Managing Director to drive new venture
Kuala Lumpur, 18 June 2014 – Dagang NeXchange Berhad (formerly known as TIME Engineering Berhad) is acquiring the entire equity interest of OGPC Sdn Bhd and OGPC O&G Sdn Bhd (collectively known as OGPC Group), a leading provider of equipment and services for oil and gas, petrochemical and power industries, thus marking a move by Dagang NeXchange or DNeX into the oil and gas industry.
The acquisition of OGPC Group is aimed to deliver not only diversification but enrichment to DNeX’s existing business, and DNeX is geared to make inroads and tap opportunities in the oil and gas industry by leveraging on OGPC Group’s strengths and experience in the industry.
By acquiring OGPC Group, DNeX’s move into the oil and gas industry can also be viewed as beyond an entry level as OGPC Group will serve as a platform for DNeX to jumpstart its venture in the industry especially with OGPC Group’s highly positive performance in recent years.
Revenue derived from the oil and gas industry is expected to contribute positively to DNeX’s bottomline in future years.
DNeX proposed to acquire OGPC Group at RM203,000,000 and will be satisfied via RM100,000,000 in cash payment deriving from a proposed rights issue, proposed share issue and/or internal funds, and the remaining RM103,000,000 to be satisfied via issuance of 396,153,846 DNeX shares at RM0.26 per share together with 198,076,923 free Warrants.
The Company is also proposing the establishment of an Employee’s Share Option Scheme (ESOS) of up to five per cent of the enlarged issued and paid up share capital of DNeX.
The exercise is expected to be completed in the first quarter of 2015 pending approval required from relevant authorities including Securities Commission, Bursa Securities, Companies Commission of Malaysia as well as shareholders of DNeX, and any other relevant third parties.
Zainal possesses leadership experience in deepwater operations and joint-venture management with strong partner relation experience with global players in the oil and gas sector. He also has in depth knowledge of major hydrocarbon producing areas in West Africa, North America and Asia Pacific in addition to leadership experience in the Middle East, South East Asia, North Africa and Australia.
He was previously Chief Executive Officer of Malakoff Corporation Berhad where he led the company’s transformation into a leading international Independent Water and Power Producer (IWPP) with core businesses in power generation, water desalination and operations & maintenance services.
Zainal had also served ExxonMobil for 28 years in various managerial and leadership capacities at the multinational company’s business units and operations worldwide. He graduated with a BE Civil Engineering from University of Queensland, Australia in 1982.
“On behalf of the Board of Directors of DNeX, I would like to welcome Zainal on board the company’s Leadership Team. We are confident that with his wealth of knowledge and experience, he will be able to lead the company in its venture in the oil and gas industry while at the same time maintain its position as a leading e-commerce player in Trade Facilitation,” said Datuk Samsul Husin, Executive Deputy Chairman of DNeX.
“The company’s venture into oil and gas is in line with our commitment to increase shareholders’ value by tapping into opportunities in that industry while at the same time delivering compelling e-commerce services for Trade Facilitation,”Samsul added.
For more information on the corporate exercise, please refer to announcement made by AmInvestment Bank Berhad on behalf of DNeX to Bursa Malaysia.