KUALA LUMPUR (March 13): Fitters Diversified Bhd has justified its acquisition of 12.14 million shares in Computer Forms (Malaysia) Bhd due to the latter’s involvement in the electric vehicle (EV) industry.

In its Bursa filing on Monday (March 13), the group rationalised the acquisition of Computer Forms after CFM’s joint venture agreement with EA Mobility Holding Co Ltd on February 5 to sell, distribute, assemble and produce EVs in Malaysia.

“The Malaysian electric vehicle market is currently in the very initial stages of growth,” said Fitters in its filing.

“However, Fitters is optimistic that the government's initiatives to promote next-generation vehicles in the country will stimulate the demand for electric vehicles, and we anticipate CFM will be benefiting from this trend.”

The group also clarified on CFM’s value via the joint venture into EV, stating that CFM has teamed up with Bangkok-listed Energy Absolute Public Company Ltd to jointly produce and distribute EV and EV chargers in Malaysia.

“It is believed that the joint venture will contribute positively to its future earnings in the long run as Malaysia has the policy to reduce the consumption of fossil fuels and increase the use of electric vehicles by up to 37% from the year 2022 to 2040.”

Fitters added that Energy Absolute has further agreed to partner with CFM on transferring innovation, renewable energy experience and carbon credit to the Malaysian government to boost Malaysia’s sustainability in achieving its Net Zero goal by 2050.

“Malaysian Prime Minister, Datuk Seri Anwar Ibrahim acknowledged EA’s (Energy Absolute) interest in supporting, investing, and promoting the pilot project together with CFM to become an Asian leader in Energy Storage.

“It is believed that the favourable global growth in CFM’s major operating sectors is beneficial for the CFM Group’s earnings, especially in the long run.”

On Datuk Seri Pang Chow Huat, Fitters clarified that he is the largest shareholder of Fitters with 48.05 million shares or a 7.9% stake. Pang also holds 145.17 million shares or 54.25% in CFM.

In terms of shareholdings of common directors in Fitters and CRM, of the three directors in both groups, Hoo Swee Guan holds 40,000 shares or 0.007% in Fitters and none in CFM.

The other directors — Wong Kok Seong and Khoo See Yiing — have no shares in either Fitters or CFM.

Fitter’s share price closed one sen or 10.53% lower at 8.5 sen. Its market capitalisation was RM50.13 million.

Computer Form’s shares also closed lower by two sen or 1.41% at RM1.40, giving it a market capitalisation of RM374.61 million.