KUALA LUMPUR (March 23): SMTrack Bhd is purchasing a Bombardier Challenger 601-3A aircraft for US$1.8 million (RM7.6 million) as part of its move to venture into cargo carriage services.

In a filing with the bourse, the company said it has entered into an aircraft purchase agreement with Fairway Logistic (M) Sdn Bhd for the purchase of the aircraft, together with all installed parts, including auxiliary power unit and landing gear, major avionics, cabin interior, wheels and brakes.

It will fund the acquisition using proceeds from the issuance of redeemable convertible notes, which was approved by the shareholders at the company's extraordinary general meeting held on Dec 28, 2020.

The acquisition will increase SMTrack's net assets to RM50.79 million from RM43.23 million, it said, although the company does not expect it to have any material impact on its earnings for the financial year ending Dec 31, 2022.

"There are no liabilities, including contingent liabilities and guarantees to be assumed by SMTrack pursuant to the acquisition," it said.

The company expects to complete the acquisition within three months.

SMTrack closed unchanged at 8.5 sen for a market capitalisation of RM65.38 million.

Source: TheEdge - 24 Mar 2022