KPower ventures into logistics business


In its filing with Bursa Malaysia yesterday, the energy company said it had entered into a share sale agreement with Sabaka Group Sdn Bhd for the proposed acquisition, expected to be completed by the second quarter of 2021.

PETALING JAYA: Kumpulan Powernet Bhd (Kpower) is making a foray into the logistics business with its proposed acquisition of a 51% stake in chemical and gas logistic transportation and forwarding services company, Chemtrax Sdn Bhd, for RM10mil cash.

In its filing with Bursa Malaysia yesterday, the energy company said it had entered into a share sale agreement with Sabaka Group Sdn Bhd for the proposed acquisition, expected to be completed by the second quarter of 2021.

KPower group managing director Mustakim Mat Nun said the proposed acquisition was consistent with the company’s strategy to venture into the logistics segment upon the emergence of new shareholders.

“Through this acquisition, we can immediately leverage on Chemtrax’s decades of experience, expertise and its existing network with multinational companies to further expand and complement KPower’s and its major shareholders’ activities, ” he said.

The purchase consideration would be financed through internally generated funds and/or bank borrowings. Chemtrax has logistics facilities with depots and yards in Pasir Gudang and Simpang Renggam, Johor and Kuantan, Pahang.

Founded in 1998, the company has over 22 years of experiences handling and specialises in transportation of hazardous materials and also specific materials used in nitrile gloves manufacturing between Malaysia and Singapore.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Next In Business News

TDM says CEO Zainal Abidin resigned over disagreement with chairman�
Petronas posts RM3.4bil net loss in Q3
Boustead appoints former Telekom boss Shazalli Ramly as new Group MD
Public Bank 3Q net profit higher at RM1.39b
CIMB's 3Q pre-tax profit improves sequentially on higher operating income
Kenanga IB profit up tenfold as brokerage, trading income soar
Palm oil’s stunning rally is set to boost supermarket prices
Alliance Bank posts lower 2Q net profit of RM103.94m on higher reserves
Pandemic and travel curbs hit Datasonic Q2 earnings�
Higher net profit for Hong Leong Bank

Stories You'll Enjoy