NWP terminates share sale deal
Timber firm had proposed to buy 30% stake in charter services company
PETALING JAYA: Timber firm NWP Holdings Bhd has terminated the share sale agreement with regard to a 30% equity interest acquisition in Aviation A.I. Inc (AAI).
According to a Bursa Malaysia filing, AAI, which was incorporated on June 30, 2016, is a charter services company with the principal activity of the provision of private charter air transport services, operating from Sultan Abdul Aziz Airport in Selangor.
On Oct 14, 2016, the group, via its subsidiary NWP Builder Sdn Bhd, had entered into a conditional sale of shares agreement to acquire 300 common shares representing a 30% equity interest in AAI for US$1.5mil (RM6.3mil) cash.
NWP had previously said that it was exploring various business opportunities to add to its sources of income, and that the proposed acquisition represented an opportunity for the group to invest in a provider of private charter air transport services.
The source of funding for the purchase was supposed to be advances from the executive directors (EDs) of NWP.
The purchase consideration was arrived at on a willing buyer-willing seller basis after taking into consideration AAI’s future prospects and the aircraft’s market value of US$3.67mil (RM15.43mil) as at July 23, 2016, as appraised by Wolfe Aviation, an aircraft appraiser based in the United States.
AAI owns a Gulfstream G-1159A aircraft.
Separately, it was also announced that NWP’s former chief executive officer (CEO) and ED Wong See Ming has been appointed as NWP’s ED.
The 51-year-old Wong was appointed as CEO of the company on Aug 18, 2008 and was redesignated as group ED on May 6, 2016.
In September 2017, he relinquished his position as group ED of NWP.
For the first quarter ended Nov 30, 2017, NWP registered a net loss of RM1mil, as compared to the previous corresponding period’s loss of RM809,000.
The 41% decrease in the group’s revenue to RM2.72mil for the quarter was due to lower demand from the China market for timer-related products.
Shares in NWP closed flat at 26.5 sen.