T7 Global Berhad, formerly known as Tanjung Offshore Berhad, a major upstream and downstream oil and gas service provider in Malaysia has entered into an agreement for the disposal of its Birmingham Property (“the Property”) for a cash consideration of GBP5.75 million (RM32.24 million) through the entire share sale of its wholly owned subsidiary, 7 New Market Street Holdings Limited the holding company of the Property, subject to the fulfilment of conditions precedent.
The Property is a 10-storey office block with basement and 18 car park spaces which has mainly been stripped back to shell fit located at the edge of the Birmingham Central Business District. It is situated on the corner of New Market Street and Great Charles Street Queensway sitting on a piece of freehold land and has connectivity to a complete range of transport links where the Snowhill station is situated 0.2 miles away and New Street station is within a short walking distance.
Upon completion of the disposal of the Property, T7 Global will recognise a one-off gain of RM9.7 million which will contribute significantly to the Group’s financial performance.
The Group plans to use the proceeds of RM32.24 mainly for working capital for projects awarded by Petronas Carigali and Sarawak Shell, and for additional general working capital.
The Agreement has the following conditions precedent being: 1) approval of shareholders of T7 Global at a general meeting; 2) approval and/or consent of relevant authorities, if required; and 3) T7 Global Board of Directors resolution authorising the execution of the Agreement.
The consideration will be paid in stages whereby 10% has been received by T7 Global and the remaining 90% of GBP5.2 million will be paid in three equal monthly payments after compliance and fulfilment of the conditions precedent by T7 Global.
“We are pleased to have completed the disposal of our Birmingham property as we are moving towards streamlining our business towards our core areas of expertise. The cash proceeds of RM32.24 million from the disposal will be critical for the Group’s plans to solidify its foothold in the oil & gas sector.” said Tan Sri Tan Kean Soon, Executive Deputy Chairman of T7 Global Berhad (pic).