Alan Ong, managing director of Sin-Kung Logistics
KUALA LUMPUR: Sin-Kung Logistics Bhd has inked a deal to acquire the entire equity interest in aircraft leasing firm Prima Air Sdn Bhd, for RM20.7mil cash.
In a filing with Bursa Malaysia, the group said the share sale agreement was signed with the husband and wife owners of Prima Air, Tan Sri Halim Mohammad and Puan Sri Mazmin Noordin.
According to Sin-Kung Logistics, the proposed acquisition offers a strategic opportunity to expand its service offerings to include the provision of private jet charter as well as air freight cargo services to airlines as well as local and international freight forwarders.
Furthermore, the proposed acquisition enhances its service network to include cross-border air logistics services as well as underserved routes.
The group said Prima Air is poised to benefit from air cargo growth and contribute positively to the group.
"As the air cargo industry is highly regulated with high entry barriers, the proposed acquisition is timely for SKL Group to enter into the air cargo segment to ride on the increasing demand in line with the prospects of Prima Air.
"As such, the board believes that the proposed acquisition will allow the group to grow additional income stream and contribute positively to the financial performance of the group moving forward.
The group intends to leverage on the experience and expertise of group managing director Alan Ong Lay Wooi, and has identified Hisham Halim, the executive director of Prima Air, and Azrul Hisham Abdul Wahab, who has more 10 years of experience in the aviation industry, to spearhead the operations of Prima Air.
The group also intends to leverage the experience of the other key management personnel of Prima Air to ensure its operations are supported and carried out without disruption.
The proposed acquisition is expected to be completed by end-2024.
