KUALA LUMPUR (May 2): Swift Haulage Bhd (Swift) has bought a Sarawak-based private company that handles shipping agency services and cargoes as part of its expansion to Borneo for future growth.

The group acquired Standard Marine Agencies (Sarawak) Sdn Bhd (SMA) for RM1.4 million cash, via its wholly-owned Swift Integrated Logistics Sdn Bhd, Swift's bourse filing showed.

The share sale agreement for the purchase was inked with SMA directors Chow Yan Ann and Nancy Ng Fui Fong on Tuesday (May 2), making SMA an indirect wholly-owned subsidiary of Swift.

“Growth on the Borneo Island is anticipated to accelerate in the near future primarily driven by the investments in infrastructure and its richness in natural resources. The group will use the acquisition as a starting point to provide additional logistic services in the region,” said Swift.

“Additionally, the acquisition will provide the group access to a new customer base, allowing expansion without having to invest heavily in recruitment. This will provide the group with a competitive advantage in the market,” it added.

The acquisition will be financed with internal funds.

Swift's share price closed unchanged at 48.5 sen on Tuesday, giving the group a market capitalisation of RM427.15 million.

This article has been updated for accuracy. An earlier version reported the private shipping agency company as Sabah-based. The error is regretted.