MMAG to acquire 80% of MJETS for RM21.36m

KUALA LUMPUR: MMAG Holdings Bhd has proposed to acquire 5.69 million shares in M Jets International Sdn Bhd (MJETS) from JT Aerotech Solutions Sdn Bhd (JTAS) for RM21.36 million.

The shares represent 80 per cent of equity interest in MJETS.

In a filing with Bursa Malaysia, MMAG said the proposed acquisition was in line with the group’s initiatives to grow and expand its supply chain management and courier and logistics business.

Due to the ongoing COVID-19 pandemic, there has been a surge in demand for e-commerce, but regrettably most passenger airplanes are currently not in service, it said.

“This led to a serious shortage of courier space to cross-border destinations such as East Malaysia, as the delivery services were previously substantially fulfilled by riding on the passenger belly space of the airlines, and the waiting time for an available space may take up to 14 days.

“Hence, with the proposed acquisition, MMAG Group will be able to have its own planned schedule delivery for timely delivery and reducing the need for the use of a third party agent,” it said.

MMAG said the acquisition would create enhanced scale and synergies for the group and further the possibility of generating additional revenue to its existing business in the near future.

It added that the acquisition would be satisfied through a combination of internally generated funds and proceeds received from the conversion of irredeemable convertible preference shares and warrants. -Bernama