KUALA LUMPUR (May 29): DXN Holdings Bhd (KL:DXN), a direct selling company specialising in consumer health and wellness products, has terminated its contentious charter for a corporate jet linked to its major shareholder.
The charter was mutually terminated between unit DXN Aero Nautic Sdn Bhd, charter carrier Luxaviation San Marino Srl, and charter manager ExecuJet Asia Pte Ltd, according to a bourse filing on Friday. The termination will take effect on May 31.
The Gulfstream G550 corporate jet under the charter is owned by LSJ Logistics Ltd, a unit of LSJ Global Sdn Bhd. LSJ Global, which holds a 29.06% stake in DXN, is controlled by DXN executive chairman and founder Datuk Lim Siow Jin.
The charter's termination reflects DXN’s ongoing review of existing arrangements under the charter, the group said, including operational requirements, commercial considerations and suitability of such arrangements in supporting business and operational objectives.
“Notwithstanding the termination, the aircraft-related arrangement has formed part of the group’s operational ecosystem, supporting its marketing and business development initiatives, particularly in enhancing brand visibility and facilitating strategic engagements across its key markets,” the group said.
“Moving forward, the company will continue to evaluate more suitable arrangements in continued support of its branding, marketing and operational requirements,” it added.
The charter was first announced in November 2024. Under the arrangement, DXN had committed to a minimum of 300 flight hours for a 12-month period at US$22,000 per flight hour — an annual minimum of US$6.6 million in total. In the event its own pilots operated the jet, the charter fee would drop to US$20,500 per flight hour. This meant an annual commitment of about US$6.15 million to US$6.6 million.
The arrangement drew intense scrutiny when it was first announced due to its significant financial impact. Market observers and minority shareholder watchdogs had questioned the necessity of the heavy expenditure for a newly relisted entity, arguing the funds could be better utilised for direct business expansion or dividend payouts.
Nevertheless, management then obtained shareholders' approval in 2025 to continue the deal as a recurrent related-party transaction.
Shares of DXN ended half a sen or 1.12% higher at 45 sen on Friday, valuing the group at RM2.24 billion.