SHAH ALAM: Merge Energy Bhd, in which several key people linked to property developer Matrix Concepts Holdings Bhd emerged as new major shareholders earlier this year, has obtained shareholders’ nod to diversify into the property sector.

At an extraordinary general meeting (EGM) held yesterday, shareholders unanimously voted to pass all the resolutions tabled at the meeting, which comprised the disposal of several non-core assets, its maiden property development project in Pasir Panjang, Negeri Sembilan, and the diversification of its business.

Several special resolutions were also passed, which included a proposed change of company name to Stella Holdings Bhd and the proposed reduction of the company’s share capital to offset its accumulated losses.

Merge Energy executive chairman Datuk Mohamad Haslah Mohamad Amin said the company is now on a better financial footing, as the group’s new shareholders have successfully cleaned up the company’s operations over the past six months.

“We have now wiped out our losses, putting the group on a better financial footing. What is important is that now we have identified three core businesses to focus on: the water infrastructure segment, oil and gas, and now property.

“We are positive that the company would be seeing positive numbers within FY20 (financial year 2020),” he told The Edge Financial Daily after the EGM.

Mohamad Haslah is also the non-executive chairman of Matrix Concepts and one of three ultimate offerors in the takeover of the company that was concluded in January. He now holds 6.61% in Merge Energy via Anjuran Utama Sdn Bhd.

The takeover also saw the entry of Datuk Lee Tian Hock, the founder and executive deputy chairman of Matrix Concepts, who was appointed non-independent and non-executive director with a 33.5% stake.

Merge Energy closed half a sen higher at 91.5 sen yesterday, with a market capitalisation of RM61.31 million.