CEO Morning Brief

MMAG, Sri Lankan Conglomerate to Set Up Airline Cargo Feeder Network

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Publish date: Tue, 14 May 2024, 10:16 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (May 13): MMAG Holdings Bhd (KL:MMAG) has teamed up with a conglomerate in Sri Lanka that is bidding to acquire Sri Lankan Airlines, to establish a cargo feeder network for the national carrier.

MMAG, which mainly provides supply chain services, signed a collaboration and services agreement with Supreme Global Holdings (Private) Ltd, the company said in an exchange filing. The company agreed to support the acquisition by providing the requisite guidance and services to Supreme Global, it noted.

Shares of MMAG extended a surge, rising as much as 88% or 17.5 sen to 37.5 sen, following the announcement.

Under the agreement, MMAG would provide freighters and operational support services for Sri Lankan Airlines through its aviation arm MMAG Aviation Consortium Sdn Bhd once the acquisition is completed. The company will also support Supreme Global and its consortium partner in restructuring efforts.

The company did not disclose the potential contract value of the services. MMAG said the agreement would allow the group to enhance its global footprint in the aviation and logistics industry.

So far this year, MMAG has entered into several collaborations, including with Capital A Bhd’s (KL:CAPITALA) Teleport Everywhere Pte Ltd for charter freight services, and a memorandum of collaboration with Menzies Aviation (SG) Pte Ltd for ground handling and aviation services.

In addition, it has received a letter of award from Malaysia Airlines Bhd (MAB) to enhance the logistics and cargo distribution capabilities of its cargo entity, MAB Kargo Sdn Bhd.

The value of these agreements was also not disclosed.

Source: TheEdge - 14 May 2024

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