KUALA LUMPUR: Sapura Resources Bhd
said its board of directors is assessing the competition and conflict that might occur in its aviation business, if Explorer Group Sdn Bhd and Royal Jet LLC join hands in the business.
Responding to an article in a local English daily, the New Straits Times (NST) titled, "Poser over conflicts of interest at Sapura Resources" released earlier today, the company said the board is currently getting more information on the matter, and is in the process of assessing the options available to address the competition and conflict situation.
"As the company's aviation business is the business of hangarage, ground handling and aircraft management and potentially private jet maintenance, repair and overhaul (MRO), the board of directors is aware that there may be competition if the Explorer Group Sdn Bhd together with Royal Jet LLC embarks on the hangarage, ground handling, aircraft management services, and private jet MRO businesses.
"The appropriate announcements will be made in due course," it said in a filing with Bursa Malaysia today.
According to NST, Explorer Group and RoyalJet had reportedly signed a Memorandum of Understanding in December 2023 to collaborate on private flight operations based at the Sultan Abdul Aziz Shah Airport.
"The partnership aims to provide opportunities for RoyalJet to enter the Southeast Asian private aviation market for fixed-base operations, private charter and aircraft maintenance services," it said.
The report also quoted a minority shareholder as saying that the deal could result in a potential conflict of interest in that Datuk Shahriman Shamsuddin is a shareholder and executive director of Explorer Group, and also managing director of Sapura Resources.
To that end, Sapura Resources said legal opinions have been obtained, and Shahriman has been instructed to abstain from managing the aviation business.
It said the board aviation management committee has been formed to undertake his role, with the chief operating officer aviation and all the heads in the aviation business will report to the committee.
"The company assures all shareholders that it will comply with all provisions of the law and the board of directors will continue to exercise its fiduciary duties in the best interest of the company and adhere to the good corporate governance standards," it said. - Bernama
