KUALA LUMPUR (May 4): AGX Group Berhad (KL:AGX) said it is reorganising its regional logistics assets via a share swap, transferring its Philippines unit stake to its Singapore associate as part of its corporate restructuring exercise.

In a bourse filing on Monday, the third-party logistics solutions provider said the exercise involves the disposal of the 29.99% stake held by AGX Express Phils Inc in All-Link Philippines to All-Link Singapore, which will result in the Philippines unit becoming a subsidiary of the Singapore-based entity, consolidating the group’s regional operations.

AGX’s effective equity interest in All-Link Philippines will decrease to 31% from 47.99% while its stake in All-Link Singapore will be diluted to about 23.2% from 30% following the corporate exercise.

The disposal consideration is RM856,048 (S$276,689), which the group said will be satisfied via the issuance of 1,447 new shares in All-Link Singapore to AGX Logistics (S) Pte Ltd (AGX Singapore).

AGX said All-Link Singapore — a joint venture with Shanghai All-Link Logistics Co Ltd, which provides logistics services in China and supports cross-border operations in Asean — submitted an application for the corporate exercise to the Singapore Exchange Securities Trading Ltd on April 30.

The group said the exercise is aimed at unlocking the value of its investment in All-Link Singapore, strengthening the associate’s capital base and supporting its future growth across the region.

“The corporate exercise represents a key step in crystallising the value of our investment in All-Link," said AGX group CEO Ponnudorai Periasamy.

"With the corporate exercise, All-Link will benefit from enhanced market transparency, stronger governance standards and improved access to capital, which are expected to
support its next phase of growth."

At Monday’s close, shares in AGX fell half a sen or 1.16% to 42.5 sen, valuing the group at RM183.79 million.