DRB-Hicom to buy over Gading Sari Aviation Services

PETALING JAYA: DRB-HICOM Bhd, under its wholly-owned subsidiary KL Airport Services Sdn Bhd (KLAS) plans to buy over Gading Sari Aviation Services Sdn Bhd, a local cargo air service company, for RM72 million.
Gading Sari's major shareholders include Tengku Mahkota of Pahang Tengku Abdullah Ibni Sultan Haji Ahmad Shah, Vescargo Sdn Bhd and Tengku Azman Ibni Almarhum Sultan Abu Bakar, Tengku Zafrul Tengku Abdul Aziz and Raja Mufik Affandi Raja Khalid.
The company yesterday entered into a share purchase agreement with Gading Sari for the proposed acquisition of RM4.80 per share over its 15 million ordinary shares, where Gading Sari agreed to full disclosure for the due diligence exercise which will be a condition precedent to completion.
In a filing with Bursa Malaysia, DRB-HICOM said the acquisition, which it plans to fund via internal funds and bank borrowings, is in line with its plan to develop KLAS into a leading centralized integrated logistics services provider in Malaysia by providing a one stop solution.
The company said the proposed acquisition is also part of KLAS' bigger plan of providing an intermodal logistics solutions and supply chain management (SCM) to transform it into a fully integrated logistics service provider providing end-to-end SCM.
"The proposed acquisition presents an opportunity for the group to diversify into the air cargo transport business which is expected to benefit the DRB-HICOM group in the future," it said.