Mmag Soars 82.5 Pct, Boosted By Ties With Sri Lankan Conglomerate

KUALA LUMPUR, May 13 (Bernama) -- MMAG Holdings Bhd soared more than 80 per cent in Bursa Malaysia’s afternoon trade, hitting 36.5 sen at 2.38 pm, 16.5 sen higher than yesterday’s close of 20 sen.  

The counter topped the actives with about 134 million shares changing hands.

The full-fledged integrated supply chain management company today said in a Bursa Malaysia filing that its wholly owned subsidiary, MMAG Aviation Consortium Sdn Bhd (MAC), had on Saturday entered into a strategic collaboration and support services agreement with Supreme Global Holdings (Private) Ltd, a prominent Sri Lankan conglomerate with diversified interests spanning finance, infrastructure, logistics and aviation.

The plan is to establish a partnership in Sri Lanka’s aviation sector.

MMAG said Supreme Global is buying Sri Lanka’s national Sri Lankan Airlines, along with its consortium partner. It has identified MAC as the best candidate to partner and guide, following the group’s recent contracts secured from major carriers like MasKargo and Teleport by AirAsia, establishing the group as a key feeder and cargo handling operator.

“MAC agrees to support the said acquisition by providing the requisite guidance, and specialised services, focusing on establishing and managing a regional cargo feeder network, subject to the terms and conditions of the agreement,” the filing said.

MAC will provide freighter aircraft and operational support to establish a cargo feeder network for Sri Lankan Airlines post-acquisition.

It will also support Supreme Global and its partner in restructuring efforts post-acquisition and assist in launching a cargo network leveraging the geographical position of Sri Lanka to enhance its capacity as a strategic hub.

“The board believes the agreement will enable MMAG Group to enhance its global footprint in the aviation and logistics industry, strengthening the positions of MMAG and Supreme Global and advancing Sri Lanka's air cargo landscape, should the acquisition plan materialise,” it said.

-- BERNAMA