Latest news with #T7Global
New Straits Times
4 days ago
- Business
- New Straits Times
T7 Global proposes sweeping share plan, includes directors and family members
KUALA LUMPUR: T7 Global Bhd is seeking shareholder approval for a sweeping new long-term incentive plan (LTIP) that would allow it to issue or transfer shares equivalent to up to 15 per cent of its issued capital. The proposed LTIP includes allocations to all directors, the group chief executive officer (CEO) and several family members, according to a shareholder circular filed with Bursa Malaysia today. The plan is intended to replace a dormant employee share option scheme (ESOS) launched in 2017, under which not a single option was granted over its eight-year lifespan. T7 Global now proposes to terminate that scheme early and introduce a broader plan comprising not only stock options but also outright share grants, awarded with no cash payment required from recipients. Among the proposed recipients are executive chairman Tan Sri Nik Norzrul Thani, group CEO Tan Kay Zhuin and directors Tan Kay Vin and Tan Kay Shen, who are sons of T7 Global's major shareholder Tan Sri Tan Kean Soon. Their mother, Puan Sri Shirley Law, who is senior vice president of group support services, is also listed as a recipient. Also named is their uncle, Datuk Tan Kean Seng, deputy head of the Industrial Solutions Division. The LTIP, to be voted on at an extraordinary general meeting (EGM) on June 24, could see the company issuing as many as 175 million new shares, depending on how the plan is executed. While the ESOS component may generate working capital upon exercise, the share grant plan (SGP) would award shares at no cost to recipients, effectively diluting existing shareholders without raising funds. The board is also seeking shareholder approval to waive pre-emptive rights under Section 85 of the Companies Act, which would allow new shares issued under the LTIP to bypass existing shareholders. The proposal comes as T7 Global's share price has fallen sharply, tumbling more than 50 per cent, from a high of 53.5 sen in June 2024 to 26 sen in May 2025. This followed a private placement exercise completed in October 2024 that raised RM42.9 million and expanded the company's share base by over 81 million shares. Despite the timing, the company said the LTIP is necessary to retain and motivate key personnel, align management interests with shareholders and attract new talent. "The allocations to independent and non-executive directors are subject to vesting conditions and do not compromise their ability to act in the best interests of the company," it said in the circular. Still, the breadth of the proposal, extending to board members, C-suite executives and their relatives, may raise questions around governance, oversight and the concentration of incentives within a small circle of insiders. If approved, the plan will be in force for 10 years, with an LTIP committee appointed by the board having wide discretion over how shares are awarded, vested and priced. The exercise price for stock options may carry a discount of up to 10 per cent to the prevailing market price, while shares granted under the SGP would be based on the same reference but awarded free of charge. Bursa Malaysia has approved the plan in principle, subject to several conditions. Shareholders will vote on the resolution at T7 Global's EGM on June 24. Shares of T7 Global closed half a sen, or two per cent, higher at 25.5 sen, with 5.12 million shares traded. This valued the company at RM230.15 million.
The Star
19-05-2025
- Business
- The Star
T7 Global showing likely to be affected by BHS delays
PETALING JAYA: Delays in the KLIA baggage handling system (BHS) project is expected to weigh on T7 Global Bhd 's earnings. Phillip Research cut its 2025-2026 earnings per share forecasts by 16% to 17% for T7 Global to account for slower work progress and lower margins. It maintains its 'buy' call with a lower target price of 34 sen from 66 sen a share on the company after rolling forward its valuation. The key risks to its stock call include operational delays at its existing mobile offshore production units or Mopus, further postponement in BHS works, and higher-than-expected operating costs Given that the BHS project accounts for 17% and 21% of T7 Global's 2024 revenue and profit after tax, respectively, any continued delays will weigh on its industrial solution division and pose downside risks to its 2025-26 earnings forecasts, the research house stated. T7 Global completed Phase 1 of the KLIA BHS upgrading work in KLIA Terminal 1 in February 2025. However, progress on Phases 2 and 3 has slowed due to the challenges of carrying out works within a live airport environment. The remaining works are now anticipated to be delayed by between one and 1.5 years from the original completion timeline of December 2025. A formal revision to the project timeline has yet to be officially confirmed. Phillip Research expects T7 Global's energy division to anchor long-term growth. T7 Global has emerged as the largest beneficiary of the recently rolled out maintenance, construction and modification (MCM) packages, having secured RM1.7bil worth of contracts. This lifts its total outstanding order book to RM4.5bil. Its Mopus, Elise and Shirley, which began operations in July 2023 and August 2024 respectively, are expected to contribute full-year earnings in 2025. The group is actively bidding for RM13.7bil worth of contracts. These include several floating production, storage and offloading vessels, MCM services, well services, offshore facility decommissioning and government-related projects. Given its strong order book and robust tender pipeline, Phillip Research expects the group's energy division to remain its primary earnings driver, going forward.
