Jaikishan eyes new vehicle

(The Star) – After selling out his stake in Envair Bhd, Deepak Jaikishan is training his eyes on another listed company to pursue his interest in the oil and gas business sector.

According to him, this would be done via a reverse takeover (RTO). However, he stopped short of revealing the identity of the company.

“We are in the final stages of negotiations and it won’t be fair to reveal it until we sign an agreement.

“It is a profitable Main Market company and we will maintain the original business while we grow our oil and gas interest,” he said at a hastily arranged press conference in a swanky hotel in Kuala Lumpur yesterday.

He said he would invest up to RM20mil to get a 44% stake in the company.

When asked on the rationale of an RTO, Jaikishan said he wanted to pursue his interest rapidly.

“We are in a hurry and we want to move immediately. Negotiations would be a done deal by Jan 15 and probably the latest by Jan 22. We need a listed company as the oil and gas sector is very capital intensive, and we need a listed company to raise the right capital,” he said.

Jaikishan said he would focus on trading the commodity, and would require financial strength and the expertise to buy and sell at the right time.

“We are going into a clean organisation. We have not struck any deal yet and we have to work a bit harder compared to an entry into Envair but we feel that we can achieve our goal,” he said.

To recap, Envair unveiled its plans in October to venture into the oil and gas industry by supplying two million barrels of light crude oil monthly for 60 months to a China-based company, An Hong Shenzhen.

The 39-year-old businessman said discussions to buy more shares from other Envair substantial shareholders, whom he declined to identify, did not bear fruit as they could not agree on the pricing, adding that he had exhausted all avenues to get his desired stake of 20% to 25%.

“My ability to control the company (Envair) was diminished, as media reports had made the substantial shareholders uncomfortable,” he said. Some earlier media reports questioned his intention to enter the company.

Meanwhile, in a statement, Jaikishan said profits from his sell-off amounting to RM767,000 would be distributed to seven charities as a gesture of goodwill during the current festive season.

“We are serious about the business and we are not here to skim money from the market. There is no intention for that. RM700,000 doesn’t thrill me, I have made much more than that. My intention to go into the company was sincere, which was to help them get the contract across and make sure they get the financing support and deliver the contract,” he said.

However, he does not discount the possibility for him to re-enter Envair if negotiations bear fruit.

“In business, it’s always a comma and there is no full stop. There is always a new way and there is always a new situation,” he said.

According to Jaikishan, he sold off his six million shares, or 5.06% stake, in the loss-making air and water filter manufacturer at prices ranging from 26 sen to 35 sen over two to three days.

Another Chinese national, Zhang LiYing, also sold his 9.11% stake in Envair on the same day, two months after acquiring it.

Both trailed the exit of another Chinese national, Jiang Chuan Yi, who sold his 6.75% holding in Envair less than a month after acquiring it on Nov 1.

“I don’t know who these Chinese nationals are; I’ve never met them,” Jaikishan said.