Malaysia-based Sin-Kung Logistics Bhd (SKL) has completed the acquisition of fellow Malaysian firm Prima Air Sdn Bhd (PASB) to invest in air cargo.
SKL announced the acquisition for RM20.7m in a statement on 13 March.
"The Board wishes to announce that the Proposed Acquisition has been completed on 13 March 2025, following the full settlement of the Balance Purchase Consideration to the Vendors," said SKL.
"Pursuant to the completion of the Proposed Acquisition, PASB has become a wholly-owned subsidiary of SKL."
The initial announcement was made on 2 October.
SKL is an integrated logistics service provider that is principally involved in the provision of trucking services with a focus on airport-to-airport road feeder services.
Additionally, it provides container haulage services, warehousing and distribution services and other logistics-related services.
PASB primarily sells and leases aircraft. It also holds an air service permit and air operator certificate, both of which are valid until 31 March 2025 and 31 December 2025 respectively, which allow the company to conduct non-scheduled commercial air transport operations.
Sin-Kung Logistics expects the acquisition to help it build cross-border air cargo and logistics services, as well as interline agreements.
The company said that the acquisition is a good opportunity to move into the air cargo industry and that it expects demand to be driven by electronics, e-commerce and perishables.
"The Proposed Acquisition offers a strategic opportunity to acquire PASB which holds the Air Service Permit and Air Operator Certificate that will allow SKL and its subsidiaries (“SKL Group” or the “Group”) to expand its service offerings to include the provision of private jet charter as well as air freight cargo services to its existing customers comprising the airlines as well as local and international freight forwarders," said SKL in its initial company announcement in October last year.
The company added: "Furthermore, the Proposed Acquisition enhances its service network to include cross-border air logistics services as well as underserved routes. Following completion of the Proposed Acquisition, SKL Group is able to offer air feeder services and expects to enter into cargo interline agreements with its airline customers to establish a strategic interline partnership to transport each other’s shipments on specific routes.
"The Proposed Acquisition will also enable SKL Group to offer full supply chain solutions for its local and international freight forwarders. As the expansion of such services and network complements the current airport-to-airport road feeder services offered to customers of SKL, the Proposed Acquisition further strengthens its competitive position in the logistics industry in Malaysia and Singapore."
