Nationwide Express-Airpak merger aborted

PETALING JAYA: A proposed merger of Nationwide Express Courier Services Bhd’s courier business and Airpak Express (M) Sdn Bhd has been called off.

Nationwide Express said it will seek possible alternative structures to acquire Airpak.

Recall that the merger between Nationwide Express’ courier business and Airpak was to have been effected via the proposed acquisition of Airpak for RM33.16 million.

Airpak is involved in courier services while its subsidiary Airpak Freight & Logistics Sdn Bhd is involved in the provision of freight and seafreight services. Airpak has a network of 58 service points throughout Malaysia.

Nationwide Express said in a filing with the stock exchange yesterday that upon deliberations and due diligence on Airpak, the group and the vendors had mutually agreed not to extend the time for the fulfilment of the share acquisition agreement (SAA) conditions beyond May 7, 2017 and to allow it to lapse.

This is on the understanding that Nationwide Express will enter into discussions on alternative structures for the acquisition of Airpak.

In view of the latest development, the SSA is rendered null and void and further details will be announced once agreement on the alternative structure has been reached, Nationwide Express said.