PETALING JAYA: AGX Group Berhad, a third party logistics solutions provider, plans to expand its physical presence to Vietnam via a shareholders’ agreement which will see the Company subscribing 180,000 shares representing 60% equity interest and control in AGX Logistics (Viet Nam) Co., Ltd for a total cash consideration of VND1.8 billion or equivalent to approximately RM334,000 (Subscription).
The remaining 40% equity interest will be held by two local experts namely Dang Huynh Ba Thanh and Lam Minh Tu. The Subscription will allow the Company to expand its business geographically by offering its suite of logistic solution offerings to Vietnam whilst leveraging on local expertise and know-how in the Vietnam market provided by the two other shareholders.
AGX Group CEO Datuk Ponnudorai Periasamy said: “Today represents another key milestone in the Company’s long term business plan in expanding our physical presence in the Asia-Pacific region. We believe that Vietnam’s rapidly growing economy and favourable business environment will allow us to grow our business by not only offering our services such as our aerospace logistics services but also allow us to better serve our existing customers within the region. In addition, by having local partners who have the local know-how of the market will mitigate some of the initial risks associated with penetrating a new market. We hope that this new venture will contribute positively to the future earnings of the Group in the long-run.”
Ponnudorai with AGX Vietnam team
