Fast Energy to expand footprint via green power
04 Aug 2021
Petroleum trading and oil bunkering player Fast Energy Holdings Bhd (formerly Techfast Holdings Bhd) is actively seeking to expand its footprint in the energy space by exploring opportunities within renewable energy.
Executive director Vincent Tan Wye Chuan said it is taking steps to strengthen its position to pursue attractive opportunities within the energy-related markets.
“Around the world, we are seeing demand for cleaner and sustainable energy gaining more traction from all quarters which include the residential, commercial as well as industrial sectors. We intend to capitalise on the rise in demand for alternative energy especially from organisations wanting to enhance their environmental, social and governance performance with the transition to renewable energy.”
The ACE Market-listed group has incorporated a new wholly owned subsidiary Fast Solar Sdn Bhd to undertake prospects in the renewable energy industry, particularly in solar power. Its intended principal activities include the investment in solar projects, as well as the design, construction, operation and trade of solar-related products.
Fast Energy’s venture into the solar market is one of the group’s initiatives towards becoming a diversified energy player, enabling it to expand its revenue streams and scope of services.
In March 2021, Fast Energy diversified into the petroleum trading and oil bunkering business. To date, it has secured several contracts to deliver a range of marine fuel oils to renowned customers, valued at an estimated RM4.2 billion.
At the same time, the group is strengthening its financial position and streamlining its operations to better position itself to take on attractive and profitable projects.
The group is in the midst of disposing a wholly owned subsidiary Techfast Precision Sdn Bhd given the declining demand for its products, which include self-clinching fasteners like screws and nuts which are becoming obsolete due to technological advancements in the assembly process of computers and televisions. The proposed disposal will raise proceeds amounting to RM6.1 million cash as well as reduce the group’s operating costs.
“We are also undertaking a proposed 2-for-1 rights issue with free warrants, with potential proceeds of up to RM109.1 million. This capital injection will strengthen our balance sheet and provide us the financial flexibility to capture future growth.”
Shareholders of Fast Energy have approved the proposed disposal of TPSB as well as the proposed 2-for-1 rights issue with free warrants at an EGM yesterday.
Source: The Sun Daily