You are here
Darco to focus on traditional core business segments
DARCO Water Technologies, which relaunched itself some two years ago following a setback, on Tuesday updated shareholders, saying it intends to focus on its traditional core businesses in the areas of environmental systems and water management services, instead of its recent foray into solar energy.
The group had previously announced plans to venture into the solar power industry. Such plans were spearheaded by its then-CEO and founder, Thye Kim Meng. Given that Mr Thye has since left the group, Darco said, its management has re-evaluated the group's overall business strategy and direction.
"Taking into consideration the current business climate, as well as the core competencies of the group and its management in environmental systems and water management services, the management, with the concurrence of the board, has determined that while the group remains open to considering business opportunities outside the environmental systems and water management services industry in the future, it will for the time being focus its efforts solely on its traditional core business segments," its announcement said.
The group had previously issued a letter of intent to purchase Con Dao Green Energy Co Ltd - the build-own-operate developer of Con Dao Solar Power Park in Vietnam. Darco said it is now actively looking for potential buyers to sell its interest in the project, to so as to recover its investment made to date.
Darco said it has invested US$600,000 for design works undertaken in respect of the project, so far.
Its announcement also said that the group intends to host a shareholders forum in the fourth quarter of this year, as its board has taken note of the concerns raised by certain shareholders relating to the group's strategic direction and future plans.