KUALA LUMPUR (July 24): Logistics service provider MMAG Holdings Bhd has entered into a deal to acquire a Boeing 737-800 converted freighter, which is currently leased to the group’s airfreight unit, for US$25.9 million (RM109.85 million).
The purchase will be made by the group's aviation arm, MMAG Aviation Consortium Sdn Bhd (MAC), from GASL Ireland Leasing A-1 Ltd, which is part of Ireland-based Genesis Aircraft Services Ltd.
In a statement, MMAG said the acquisition will increase MAC’s number of owned freighters to three, complementing its existing fleet of four leased aircraft.
“This acquisition reflects more than just another aircraft in our fleet — it represents our strategic intent to evolve into a fully empowered aviation operator,” said MAC chairman Woo Kam Weng.
“With greater control over our assets, we’re strengthening our ability to respond swiftly to market needs, optimise internal fleet utilisation, and explore new revenue channels. It’s a deliberate step towards long-term resilience and sustainable growth in a competitive logistics landscape,” he added.
Subject to shareholders’ approval, the acquisition will be completed through a structured cash payment arrangement, with phased instalments over a 14-month period and a final settlement upon transfer of ownership.
MMAG had reported a net profit of RM6.51 million for its second quarter ended March 31, 2025, on the back of RM275.26 million in revenue, supported by new contracts from both existing and new customers, as well as higher cargo volumes in its aviation segment.
MMAG was classified as a Guidance Note 3 (GN3) entity in October 2024, a status typically assigned to financially distressed ACE Market-listed firms, after its shareholders’ equity fell below 50% of its issued share capital for the financial year ended March 31, 2023.
Prior to that, in July 2024, MMAG changed its financial year-end from March to September. In November 2024, Bursa Securities granted the company a waiver from being classified as an affected listed issuer under GN3.
Shares of MMAG closed down one sen or 1.49% at 66 sen on Thursday, giving the group a market capitalisation of RM1.53 billion. Year-to-date, the counter has risen over 26%.