Malaysia's MMAG, Supreme Global Ready For SriLankan Acquisition

COLOMBO (News 1st); MMAG Holdings Bhd's wholly-owned subsidiary MMAG Aviation Consortium Sdn Bhd (MAC) has entered into a partnership with Supreme Global Holdings (Private) Limited to collaborate on the aviation sector in Sri Lanka.

In a filing with Bursa Malaysia, MMAG said the collaboration will see its aviation arm, a specialist in the air cargo segment, supporting Supreme Global in the acquisition of Sri Lankan Airlines.

"The board believes that the agreement has potential and would allow MMAG Group to enhance its global footprint in aviation and logistics industry through the collaboration with Supreme Global in Sri Lanka, strengthening both companies' positions and contributing to the advancement of Sri Lanka's air cargo landscape, should the acquisition plan materialise," it said.

Under the terms of the agreement, MAC will provide freighter aircraft and operational support to establish a cargo feeder network for Sri Lankan Airlines following its acquisition by Supreme Global and its partner.

MAC will also support Supreme Global and its partner in restructuring efforts post-acquisition, as well as assist in launching a robust cargo network leveraging the geographic position of Sri Lanka to enhance its capacity as a strategic hub.

MMAG said Supreme Global is buying Sri Lanka’s national Sri Lankan Airlines, along with its consortium partner. It has identified MAC as the best candidate to partner and guide, following the group’s recent contracts secured from major carriers like MasKargo and Teleport by AirAsia, establishing the group as a key feeder and cargo handling operator.

“MAC agrees to support the said acquisition by providing the requisite guidance, and specialised services, focusing on establishing and managing a regional cargo feeder network, subject to the terms and conditions of the agreement,” the filing said.

“The board believes the agreement will enable MMAG Group to enhance its global footprint in the aviation and logistics industry, strengthening the positions of MMAG and Supreme Global and advancing Sri Lanka’s air cargo landscape, should the acquisition plan materialise,” it said.