KUALA LUMPUR (July 6): Sersol Bhd said the agreement it inked with Thailand’s private jet charter services provider MJets Ltd to form a joint venture (JV) to foray into the private aviation industry, has been terminated.

In a filing on Thursday (July 6), Sersol said it received a notice of termination from MJets on Tuesday (July 4).

“The termination was due to the failure on the part of the parties to perform the business scope as stated in the JV agreement. The board has resolved to accept the termination of the JV agreement,” it said.

Sersol, which manufactures paints and chemical solvent, said the termination will not have any material effect on the group’s earnings or its net assets for the financial year ending Dec 31, 2023 (FY2023).

On Dec 27 last year, Sersol entered into a heads of agreement (HOA) to form the 50:50 JV company to offer aircraft charter services, ground handling services, aircraft management and to bring in a new fleet of private jets into Malaysia and Indonesia.

Leong replaces Lim Tiong Siang as chairman

In a separate filing, Sersol said it has redesignated its independent director Leong Lup Yan as executive chairman, replacing Datuk Lim Tiong Siang, who has been redesignated as non-independent and non-executive director.

Tiong Siang is the father of Sersol major shareholder and recently appointed chief executive officer (CEO) Datuk Justin Lim Hwa Tat.

Earlier, Sersol said it has been served with a court order that restrains its executive chairman cum managing director, CEO, an executive director and five independent directors from exercising their powers.

Sersol shares closed unchanged at 12 sen on Thursday, valuing the group at RM87.8 million.

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