Ta Win Holdings Berhad continues to make bold moves to further embrace the massive electric vehicle (“EV”) revolution via the signing of a Memorandum of Understanding (“MOU”) with RR One Capital D.O.O. for collaboration and joint venture. Ta Win has also proposed to undertake a private placement exercise.
Within a month, Ta Win and RR One will negotiate to form a joint venture company (“JVC”) whereby RR One will make available to Ta Win of its technical know-how in relation to the smart contracts on blockchain in the infrastructure development of EV charging stations and integrated charging ecosystem. In addition to participating in the equity of the JVC, RR One will potentially be a strategic investor in Ta Win through the subscription of shares via the proposed private placement.
Ta Win has tabled a minimum scenario of issuing a total of 682.7 million shares which will raise approximately RM109.2 million in proceeds, based on an illustrated issue price of RM0.16 per placement share. The Group has also tabled a maximum scenario of issuing a total of 1.2 billion shares, which will raise approximately RM187.8 million in proceeds, based on the illustrated issue price of RM0.16 per placement share.
Based on the minimum scenario, 68.7% of the proceeds will be utilised for the expansion of its signal and power solutions business. Currently, Ta Win is setting up the first privately owned electron beam irradiation plant in Malaysia with patented proprietary cross-linking / ionizing irradiation treatment using electron beam irradiation technology. Following Ta Win’s maiden foray into Aptiv PLC’s (“Aptiv”) global automotive supply chain, the Group intends to accelerate into the EV industry by establishing 3 electron beam irradiation plants.
These plants will enable the Group to develop technology solutions and manufacture highly engineered products that enable customers to respond to the mega trend in EV. With the Group’s patented proprietary cross-linking/ionizing irradiation treatment using electron beam irradiation technology, the application can also be applied across many growing industries such as automotive, electrical and electronic, oil & gas and renewable energy. Another 30.6% of the proceeds have been earmarked for future investments or projects.
Based on the Independent Market Report by PROVIDENCE, the global EV market size grew by almost 10 fold between 2015 and 2020, from 1.5 million vehicles to 11.3 million vehicles. This market is estimated to further expand to 51.7 million vehicles by 2025 and 144.3 million vehicles by 2030. This massive growth will be driven by factors including:-
- Government incentives to promote EV sales i.e. Europe, United States of America, People’s Republic of China and many others
- Lower battery cost that will spur demand for EVs
- Advancement in infrastructure such as EV charging stations and charging technology that will encourage usage of EVs
Dato’ Sri Ngu Tieng Ung, JP, Group Managing Director of Ta Win said, “The automotive industry is undergoing rapid development in mega trends such as increasing demand for EVs equipped with latest automotive solutions, advanced technologies and vehicle connectivity, as well as increasing government regulations related to vehicle safety, fuel efficiency and emissions control. We believe that the revolution of EVs has just begun and it will only be a matter of time before this segment achieves exponential growth.
Based on the minimum scenario drawn out for the private placement, we have allocated approximately 99.3% of the proceeds for our business expansion especially in the EV value chain. With that and the potential collaboration with RR One, Ta Win will be well positioned to pursue and capture the exponential growth in these mega trends. With the electron beam irradiation plants, we will be able to improve our products and meet higher international standards that are adhered to by overseas manufacturers. We will be able to fulfill Malaysia’s local electrical wire and cable industry and at the same time, enable local manufacturers to upgrade their technology content level of their products and compete with overseas manufacturers.”