KUALA LUMPUR: MMAG Holdings Bhd
is disposing of a Boeing B737-400SF converted freighter aircraft for US$2.8mil (RM11.43mil), resulting in an estimated loss of RM12.69mil.
In a filing with Bursa Malaysia, the company said its indirect subsidiary, MJets Air Sdn Bhd, had entered into an aircraft purchase agreement with Mont Gabanon Airlines (MGA) for the disposal.
MMAG said the aircraft, acquired in January 2025 for US$6.55mil, had an unaudited net book value of RM24.12mil as at Sept 30, 2026.
The group said the disposal was part of its ongoing review of aviation assets amid rising operating costs and weaker charter demand.
"In view of the current ongoing geopolitical tensions and global uncertainty with sharp escalation in fuel prices have not only materially increased operating costs, but reduced charter demand, particularly for this model of aircraft," it said.
MMAG said retaining the aircraft was no longer commercially viable without suitable deployment plans, adding that the disposal would help reduce its financial burden and streamline aviation operations.
Proceeds from the sale will be used mainly for MJets Air's working capital requirements, including trade payables, operating expenses, lease rentals and other day-to-day expenditures.
Under the agreement, the buyer will pay an initial deposit of US$1mil before inspecting the aircraft, with the remaining US$1.8mil payable upon satisfactory completion of the inspection.
The disposal is expected to reduce MMAG's pro forma net assets to RM184.68mil from RM197.37mil, while its gearing ratio is projected to increase to 0.18 times from 0.17 times.
The transaction does not require shareholders' approval and is expected to be completed in the fourth quarter of 2026, subject to the fulfilment of conditions under the agreement.
