Freight Management to buy three US companies

PETALING JAYA: Freight Management Holdings Bhd has proposed to acquire three freight forwarding services companies in the United States for a total US£2.2mil (RM9mil) as part of its expansion initiatives into selective international markets. In its filing with the stock exchange, the company said its indirect wholly-owned subsidiary FM Global Logistics Ventures Sdn Bhd has entered into a stock purchase agreement with several independent third parties to acquire the entire issued shares of Inter-Orient Services, Inter-Orient Corp and Noble Shipping Corp (collectively known as IOS companies). “The US market fits into the group’s strategies as it is the world’s largest importer and the second largest exporter of merchandise trade and is a major trading partner of countries where the group has a presence,” Freight Management said.

Currently, the group has its presence in Malaysia, Indonesia, Thailand, Vietnam, India, the Philippines, Australia, United Arab Emirates and the United States. Freight Management to buy three US companiesFreight Management Holdings “With the acquisitions, the group would be able to immediately leverage the existing customer base and resources of IOS companies, which have an established freight forwarding business and valid customs brokerage licence in the United States.

The IOS companies will also serve as a gateway to the vast US market via its base in Los Angeles,” it said. Freight Management said as the group develops its presence in the United States, it would also explore other logistics-related opportunities such as e-commerce fulfilment services. Barring any unforeseen circumstances, the acquisitions are expected to be completed within a month.

Freight Management said the acquisitions would be financed via internally generated funds and/or bank borrowings, the quantum of which has yet to be determined at this juncture.

It added that the acquisitions would not have any effect on the share capital and substantial shareholders’ shareholdings of the company.