KUALA LUMPUR (Feb 3): KGW Group Bhd (KL:KGW) said US-based logistics firm Accelerated Global Solutions Inc (AGS) has acquired a 15% stake in the company.

The ACE Market-listed logistics player announced KGW’s stake acquisition in a statement on Monday, which paved the way for a partnership between the two companies in bid to enhance its position in the trans-Pacific logistics segment.

It is unclear who AGS bought the 15% stake in KGW from. KGW’s substantial shareholders comprise managing director Datuk Roger Wong Ken Hong with a 61.4% stake and Cheok Hui Yen with 6.47%.

KGW said the collaboration with AGS and its parent company SpeedX Logistics, which specialises in the last-mile delivery, will enhance the group’s market reach and capabilities. 

“By integrating AGS’ comprehensive global network — which includes air freight, customs brokerage, and fulfilment services — KGW can now offer seamless, end-to-end logistics solutions,” KGW said.

“We are thrilled to welcome AGS as a shareholder in KGW. This strategic collaboration marks an exciting chapter for us. With AGS’s extensive air freight and customs expertise and SpeedX’s innovative last-mile delivery capabilities, we are redefining the logistics experience for our clients.”

KGW, which moves over 10,000 twenty-foot equivalent units (TEUs) to North America annually, said the collaboration leaves the company well-positioned to strengthen its leadership in trans-Pacific trade.

KGW managing director Wong said with AGS’ extensive air freight and customs expertise and SpeedX’s innovative last-mile delivery capabilities, the company is redefining its logistics experience for its clients.

“This allows us to enhance our trans-Pacific dominance, drive sustainable growth, and provide seamless end-to-end solutions that address the complex demands of global supply chains,” he added.

For the nine months ended Sept 30, 2024 (9MFY2024), KGW posted a narrower net profit of RM349,000 from RM759,000 a year earlier, despite revenue climbing 95.7% to RM105.75 million versus RM54.05 million.

The company attributed the lower earnings to higher administrative expenses driven by increases in sales commission, entertainment expenses and staff incentives, as well as higher other operating expenses on foreign exchange loss.

Shares in KGW ended unchanged at 16.5 sen, valuing the company at RM77.32 million.