KUALA LUMPUR: Shares in Hubline Bhd gained 9% in early trade Thursday following its venture into aviation industry.
The Sarawak-based shipping company rose 9.09%, or 0.5 sen to six sen with 17.4 million shares done. Hubline is venturing into the aviation industry with the completion of its purchase of a 51% stake in Layang Layang Aerospace Sdn Bhd. Hubline said the exercise involved the acquisition of 510,000 ordinary shares representing 51% equity interest in Layang Layang for a total purchase consideration of RM 14.198mil. Layang Layang started its operations in 1994 in Miri, Sarawak, by aircraft engineer turned entrepreneur Johan Poong Abudllah. Layang Layang is a registered service provider for Petronas and is entering into the oil and gas air transportation services with bases in Miri and Kota Kinabalu as one of its major upcoming project.
Layang Layang will generate a net profit of not less than RM10.5mil in total with a minimum of RM3mil net profit for any one year, for the financial years ending Dec 31, 2019, 2020 and 2021, or equivalent to 36 months, after taking into account the intended change of financial year end to September 30 to be co-terminus with the financial year of Hubline.