KUCHING: Shin Yang Group Bhd (formerly known as Shin Yang Shipping Corporation Bhd ) has completed the acquisition of a 60 per cent equity interest in Johor-based Mewah Exim Sdn Bhd for about RM9.54 million.
SYGroup acquired 600,000 ordinary shares representing 60 per cent of the entire equity interest in Mewah Exim from four vendors — Lim Miang Chiang, K.Purushothaman A/L Kunjamboo, Lee Sai Kiau and Lilah A/P Nanu.
Mewah Exim is principally involved in shipping freight and forwarding, and its core business activity is as freight forwarder primarily servicing major ports in Sarawak and Sabah.
SYGroup said the acquisition of Mewah Exim was completed on Sept 15, 2023 following the full settlement of the balance sum (about RM8.58 million, being 90% of the purchase consideration) to the vendors.
The balance sum was settled via cash of about RM7.38 million and utilisation of two million existing treasury shares of SYGroup to the vendors to satisfy the final balance of RM1.2 million.
Upon execution of the share sale and purchase agreement earlier, SYGroup has paid RM953,820, being 10 per cent of the purchase consideration.
Mewah Exim has four related companies — Mewah Logistik Sdn Bhd, Mewahtrans Logistic Sdn Bhd, Seatrade Agency Services Sdn Bhd and Mewah Autoworks Sdn Bhd.
Mewah Exim is the sole delegated shipping agent in Johor region of Shin Yang Shipping Sdn Bhd, one of the subsidiaries of the SYGroup.
According to SYGroup, Mewah Exim manages to sustain more than 35 per cent of the export volume from Pasir Gudang to various parts in Sabah and Sarawak.
SYGroup said Mewah Exim is a well-established shipping freight and forwarding agent in Johor region, and the acquisition of a majority stake in the latter is part of SYGroup’s plan to expand its business to Sabah and Sarawak and Peninsular Malaysia regions.
The acquisition will increase the presence of SYGroup especially in transhipment cargoes from the international routes to Malaysia as well as enhance timely and reliable delivery services to SYGroup’s overall operations.
Mewah Exim, according to SYGroup, is also able to provide an integrated total logistics solutions and door to door delivery service using a single entry point.
Meanwhile, Jaya Tiasa Holdings Bhd has also completed the acquisition of a 55 per cent equity interest in Wealth House Development Sdn Bhd for RM52.25 million.
The acquisition involved a total of 825,000 ordinary shares in Wealth House from Tiong Toh Siong Holdings Sdn Bhd, Tiong Toh Siong Enterprises Sdn Bhd and Knightbridge Venture Sdn Bhd.
Wealth House owns a piece of leasehold land with an area of 5,967.1 hectares in Pulau Bruit, Daro in Mukah Division.
Wealth House entered into a joint venture agreement on July 27, 2004 and supplementary agreement on Jan 2, 2023 with Jaya Tiasa’s wholly-owned subsidiary Erajaya to jointly develop the land into an oil palm plantation.
The total planted area is 5,745 hectares, and the age profile of the palms are seven to 19 years (prime). In financial year ended June 30, 2022, the plantation produced 51,163 tonnes of fresh fruit bunches against 59,897 tonnes in 2021.
Meanwhile, Jaya Tiasa share price rose to 89 sen for a gain of 7.5 sen on Friday (Sept 15), the highest level in 16 months, with a volume of 12.5 million shares. The stock fell to low of 47 sen on a 52-week period.
A substantial shareholder, Hong Kong-based Genine Chain Limited, has been disposing of Jaya Tiasa shares since Aug 25, 2023, reducing its stakes in the company to about 79.3 million shares (8.193%) on Sept 13.
Based on filings with Bursa Malaysia, Genine sold 740,700 shares in the open market on Aug 25, another 759,300 shares (Aug 28), 574,400 shares (Aug 29), 1,924,600 shares (Aug 30), one million shares (Sept 1), 2,002,700 shares (Sept 5), 1,715,200 shares (Sept 6), 1,063,100 shares (Sept 8) and 679,800 shares (Sept 11).
As at Sept 30, 2022, Genine was the second largest shareholder with equity interest of some 91 million shares or 9.141 per cent in the Sibu-based timber-plantation company.
