KUCHING: Hubline Bhd is venturing into the aviation industry with the completion of its purchase of a 51% stake in Layang Layang Aerospace Sdn Bhd.
In a statement Wednesday, Hubline said the exercise involved the acquisition of 510,000 ordinary shares representing 51% equity interest in Layang Layang for a total purchase consideration of RM 14.198mil.
Hubline is primarily involved in the shipping industry. Layang Layang started its operations in 1994 in Miri, Sarawak, by aircraft engineer turned entrepreneur Johan Poong Abudllah
According to the acquisition, Layang Layang will generate a profit after tax (PAT) of not less than RM10.5mil in total with a minimum of RM3mil PAT for any one year, for the financial years ending Dec 31, 2019, 2020 and 2021, or equivalent to 36 months, after taking into account the intended change of financial year end to September 30 to be co-terminus with the financial year of Hubline.
“The new business venture shall help to broaden the revenue base of Hubline into air logistics and other areas of aviation with the expectation of generating positive earnings to the company.
“The business venture is also in line with Hubline’s business expansion plan to increase its revenue base to complement our current line of businesses,” CEO and managing director Dennis Ling Li Kuang said.
He added that Layang Layang Aerospace is a registered service provider for Petronas and is entering the oil and gas air transportation services, with new bases in Miri and Kota Kinabalu as one of its major upcoming projects.
Layang Layang is in the midst of procuring two additional fixed wing aircraft and six helicopters (2 twin and 4 single engines) to support the growing demand of general aviation services in the region.
With this addition, Layang Layang fleet will comprise 28 aircrafts including a mixture of helicopters and fixed wing aircrafts, making them the largest general aviation operator in the country.