KUALA LUMPUR: Components manufacturing firm Techfast Holdings Bhd is close to winning contracts worth more than RM1.2 billion related to the oil and gas (O&G) industry in Malaysia.
Industry sources said the company was expected to make an announcement on the contract wins as early as next week.
Company officials were not available for comment at press time.
Earlier today shareholders approved Techfast's plan to diversify its activities to include O&G business such as trading of petroleum products, oil bunkering and other related activities.
"Techfast wishes to announce that all the resolutions as set out in the notice of extraordinary general meeting were duly passed by way of poll voting," the company said in a filing with Bursa Malaysia.
Shareholders also gave Techfast the green light to acquire a 35 per cent stake in CCK Petroleum Sdn Bhd for RM26.25 million.
This comprises a combination of RM16.17 million cash and RM10.08 million via the issuance of 23.44 million new Techfast shares at an issue price of 43 sen per share.
CCK Petroleum, established in 2013, is involved in the trading of bunker oil and provision of oil bunkering services related to the trading of marine fuels to ships, as well as other ocean-faring vessels.
Tan reportedly said the new business diversification would allow Techfast to ride on the evolving maritime transport industry via its shareholding in CCK Petroleum.
CCK, which posted a pre-tax profit of RM969,282 last year, has been in the bunker industry for the past 10 years.
The company has access to 13 major ports in Malaysia and there are plans to expand its trading network to include international ports.
Last month, Techfast executive director Vincent Tan Wye Chuan told the New Straits Times that it plans to diversify wiuld reduce its sole reliance on its existing manufacturing business.
Techfast manufactures self-clinching fasteners, mould e-learning rubber sheets and LED epoxy encapsulate materials.
Tan said the petroleum trading and bunkering business was expected to contribute more than 25 per cent to Techfast's annual net profits.
He added that the company had big plans in the O&G sector with a target to become a leading bunker supplier in Malaysia.