MMAG inks JV for perishable goods transshipment business

KUALA LUMPUR: MMAG Holdings Bhd's unit, MMAG Aviation Consortium Sdn Bhd, has entered into a joint venture and shareholders agreement with Asia Express Ltd and Suniao Supply Chain Sdn Bhd to undertake the business of providing oceanic and perishable goods transshipment solutions.

In a filing with Bursa Malaysia, MMAG said the JV company, Oceanic Transshipment Sdn Bhd, will be 70% owned by its subsidiary while Asia Express and Suniao will hold 20% and 10% stake in the company respectively.

It said the JV is part of its continuous initiative to drive its existing commercial air cargo and ground handling

businesses forward, particularly in providing specialised cargo and perishable goods handling solutions.

"The board is of the view that the JV presents an opportunity to broaden the group's offerings by leveraging the networks and capabilities of the parties involved.

"This strategic collaboration is expected to yield positive contributions to the group’s future earnings and enhance its financial position," it added.