KUCHING: SMTrack Bhd will acquire a 60 percent stake in Dexma Express Sdn Bhd for RM2.8 million. Dexma, which specialises in sales of carriage by air services for both passenger and cargo, is the general sales agent for PT Citilink Indonesia under a partnership programme.
Citilink is a low-cost brand of Garuda Indonesia which was set up to operate shuttle services between Indonesian cities. Citilink is principally involved in the domestic and international carriage by air services, whether through scheduled or charter flights for passengers and/or cargo.
A memorandum of understanding (MoU) between SMTrack and Dexma was signed on April 13 to establish a working arrangement between the two parties and Citilink to explore the potential investment from SMTrack into the upcoming Citilink operation in Malaysia, SMTrack said in a filing with Bursa Malaysia.
Sarawak tycoon Datuk Amar Abdul Hamed Sepawi is the second single largest shareholder of SMTrack, with an equity interest of 5.83 percent as at Nov 7, 2018.
SMTrack was renamed from Smartag Solutions Bhd in May-2014. Hamed Sepawi was a former chairman and executive director of Smartag. He resigned as a non-independent director of SMTrack due to heavy personal commitments in June-2015.
Dexma will establish another partnership programme with Citilink for the set up of Citilink Malaysia’s operation.
Under the salient terms of the MoU, Dexma will change its name to Citilink Aviation Malaysia Sdn Bhd (subject to Companies Commission of Malaysia’s approval) and obtain an air operator certificate and any other licences or permits required for the purpose of Citilink Malaysia’s operation.
“Citilink, headquartered in Jakarta, Indonesia will undertake to provide proof of fund. “The company and Citilink irrevocably confirm and agree to enter into the share sales agreement within three months from the date of the MoU upon which it will supersede the MoU,” said SMTrack.
Other salient terms include:
* Dexma to provide the term sheet and business plan together with its financial projections and valuation for the planned Malaysian operation for SMTrack’s consideration;
* The parties agreed to sign non-disclosure agreement in sharing several relevant and necessary information for the potential investment, and * the MoU will be in effect for a period of one year and can be renewed by written agreement for both parties. It can be terminated by either party at any time by providing notice in writing to the other party.
Citilink currently operates as a separate subsidiary of Garuda Indonesia with its own call sign, airline codes, logo and uniform. Citilink’s main base is Soekarno-Hatta International Airport and Juanda International Airport.
SMTrack shares were actively traded yesterday following the announcement of the MoU. The counter rose to intra-day high of 16 sen from last Friday’s close of 11.5 sen.
