KUALA LUMPUR: Sin-Kung Logistics Bhd has entered into a share sale agreement with owners of shipping company Halim Mazmin Group to acquire the entire stake in Prima Air Sdn Bhd for RM20.7 million.
Sin-Kung, in a filing with Bursa Malaysia, said it signed the agreement with Tan Sri Halim Mohammad and Puan Sri Mazmin Noordin for the acquisition of 20 million shares in Prima Air.
Upon completion of the acquisition , Prima Air will be a wholly-owned subsidiary of Sin-Kung.
Prima Air is engaged in selling and leasing aircraft, and other related activities.
It holds Air Service Permit and Air Operator Certificate, both of which are valid until March 31, 2025 and Dec 31, 2025 respectively, allowing it to undertake non-scheduled commercial air transport operations.
Sin-Kung said the acquisition will be satisfied in cash.
"The proposed acquisition offers a strategic opportunity to acquire Prima Air which holds the Air Service Permit and Air Operator Certificate that will allow Sin-Kung and its subsidiaries to expand its service offerings to include the provision of private jet charter as well as air freight cargo services to its existing customers comprising the airlines as well as local and international freight forwarders.
"Furthermore, it enhances its service network to include cross-border air logistics services as well as underserved routes.
"Following completion of the proposed acquisition , SKL Group is able to offer air feeder services and expects to enter into cargo interline agreements with its airlines customers to establish a strategic interline partnership to transport each other's shipments on specific routes."
The company added that as the expansion of such services and network complements the current airport-to-airport road feeder services offered to its customers, the acquisition further strengthens its competitive position in the logistics industry in Malaysia and Singapore.