NWP ter­mi­nates share sale deal

Tim­ber firm had pro­posed to buy 30% stake in char­ter ser­vices com­pany

The Star Malaysia - StarBiz - - News -

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.

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