SMTrack buys another aircraft for RM10.4m

by ANIS HAZIM / graphic by MZUKRI MOHAMAD

SMTRACK Bhd has purchased an aircraft for US$2.5 million (RM10.4 million) from a jet operator, Flyjet Sdn Bhd, as it ventures into cargo carriage services.

In a filing to Bursa Malaysia yesterday, the company said they had entered into an aircraft purchase agreement with Flyjet on Oct 11 to purchase a unit of Bombardier Challenger 601-3R aircraft.

The purchase comes together with all installed parts, including auxiliary power unit and landing gear, major avionics, cabin interior, wheels and brakes.

“The acquisition was funded via the proceeds arising from the issuance of redeemable convertible notes which was approved by the shareholders at the company’s EGM held on Dec 28 last year,” SMTrack said.

The radio frequency identification solution provider said the acquisition is in line with its business venture into cargo carriage services.

“After taking into consideration all aspects of the acquisition, it is in the ordinary course of business of SMTrack, and is in the best interest of the company,” it said.

It also estimates that the company’s net assets will reach RM51.93 million from RM45.63 million after the acquisition.

However, the acquisition is not expected to have any material impact on the company’s earnings for the financial year ending Dec 31, 2021.

Barring unforeseen circumstances, SMTrack said the acquisition is expected to be completed in the fourth quarter of 2022.

Previously, SMTrack had also bought a used unit of Boeing 737-400F for US$6.7 million from Cakerawala Solution International Sdn Bhd in February 2021 as part of its ventures into cargo carriage service.