KUALA LUMPUR: Straits Inter Logistics Bhd (SILB) today announced that Avarga Investment Pte Ltd, a wholly owned subsidiary of Avarga Ltd (Avarga), a public listed company on SGX, Singapore has become a substantial shareholder.
A filing with Bursa Malaysia showed that 78.1 million shares representing 10 per cent equity interest in SILB were transacted via an off-market transaction at RM0.175 per share.
After the stake acquisition, Avarga has expressed its interest to pursue further strategic collaborations with SILB in the long run.
SILB group managing director Datuk Sri Ron Ho Kam Choy said the company is pleased to welcome aboard its new strategic shareholder.
"Needless to say, we are excited for the new synergies that will be formed out of this collaboration as we strive towards bringing Straits to even greater heights," he said in a statement.
Avarga is an investment holding company primarily involved in paper manufacturing, power generation and building materials distribution.
It operates in 5 countries and employs more than 800 people with an annual revenue of RM4.5 billion. Its market capitalisation currently stands at approximately RM1 billion.
According to Avarga's 2019 annual report, Tong Kooi Ong and Lim Eng Hock are substantial shareholders of the company.
Tong has business interests in media companies that publish The Edge Malaysia, The Edge Singapore, The Edge Financial Daily, TheEdgeSingapore.com and TheEdgeMarkets.com.
He also has interests in property development, digital technologies and other businesses in Malaysia, Singapore and Canada.
Meanwhile, Lim, a Singaporean business magnate, who is also one of Singapore's leading stockbrokers and now a private investor, has invested in sectors ranging from palm oil to medicine.
In 2019, Forbes ranked Lim as the 10th richest person in Singapore with a net worth of US$2.5 billion.
SILB, which has a fleet size of 13 vessels, is engaged in oil trading and fuel bunkering services, ship management, port operation and management, inland transportation and investment holding activities.
Oil bunkering services involve provision of refuelling marine gas oil and marine fuel oil through vessels to other ships and ocean faring vessels such as oil tankers, container vessels, cargo vessels and cruise ships.
At present, SILB 55 per cent owned subsidiary, Tumpuan Megah Development Sdn Bhd operates in fifteen ports in Malaysia, which include Lumut Port, Pasir Gudang Port, Tanjung Pelepas Port, Johor Bahru Port, Kuantan Port, Kemaman Port, Kuala Terengganu Port and Labuan Port, all of which are licensed under Petroleum Development Act 1974 (PDA Licences) for its bunkering services.