CFM limit up after China's largest private car rental firm Spanco expresses intention to buy EV from it

NST Thu, Sep 29, 2022 08:34pm - 2 months View Original

At the closing today, CFM limit up after rising 44 sen or 29.53 per cent to settke at RM1.93 with 9.45 million shares traded.

KUALA LUMPUR: Shares of Computer Form (Malaysia) Bhd (CFM) hit limit up today after its vice chairman Datuk Seri Tan Choon Hwa led three senior executives of the Thailand-listed Energy Absolute Group to visit business veteran Tan Sri Tan Hua Choon to discuss cooperation opportunities.

Hua Choon's company Spanco Group is the largest private rental car group in China, and has the exclusive right to lease official cars to the Chinese government. 

In order to comply with the environmental, social contribution and corporate governance (ESG) policies, Spanco must switch 33 per cent of its fleet to electric vehicles (EVs) in the coming years.

At the closing today, CFM limit up after rising 44 sen or 29.53 per cent to settke at RM1.93 with 9.45 million shares traded.

Hua Choon was also the original major shareholder of CFM. 

Last year, he sold CFM to a consortium controlled by Datuk Seri Jacky Pang Chow Huat, Choon Hwa and others.

After the close door meeting, Choon Hwa told the media that Hua Choon had expressed intention to buy electric vehicles from the new joint venture company of CFM-Energy Absolute.

This followed his due diligence on the company's motor vehicle technology and quality as well as communicating with the senior management of Energy Absolute.

Choon Hwa added that "CFM is very confident of the electric vehicles market. A large number of electric vehicle groups and many government agencies have also expressed their willingness to purchase our EV."

The meeting took place only a day after CFM had a grand signing ceremony to form a JV company with "Energy Absolute here, which was attended by over 1,000 VIPs, government officials, business associates and partners. 

Two smart buses were on display to affirm CFM's and EA's quest in offering greener mobility solutions to Malaysians. 

Energy Absolute is a listed company in Thailand with a market value of about 335 billion baht.

Its electric buses, electric trucks, and electric vehicles are in production and have been launched in the Thai market. 

Energy Absolute is also called "Thailand Tesla" by international investment banks.

Choon Hwa emphasised that the cooperation between CFM and Energy Absolute would be long-term and sustainable.

CFM has entered the green industry and will be contributing to the national environment and zero carbon emissions.

The new JV company will maximise opportunities in production and distribution of electric vehicles.

This includes EV-buses, EV-cars, EV-trains, EV-bikes and EV-boats in which Energy Absolute has strong resources and proven capabilities in Thailand with estimated investment up to RM 5 billion in stages. 

Energy storage and charging platforms in producing lithium-ion batteries will be developed to support the EV ecosystem on Malaysian shores.

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