Quick take: Straits Inter Logistics up 2.2% on tanker acquisition

KUALA LUMPUR: Straits Inter Logistics Bhd’s shares opened higher in early trade Monday after the company announced its acquisition to buy an oil tanker for RM19.6mil.

The counter counter rose 2.22%, or 0.5 sen to 23 sen with 1.19 million shares traded.

Straits Inter Logistics Bhd’s unit is to acquire an oil tanker for US$4.7 million (RM19.56mil).

The group said SMF Begonia Ltd, which is a wholly-owned subsidiary of 67%-owned Straits Marine Fuel and Energy Sdn Bhd (SMFE), has entered into a memorandum of agreement (MoA) with Constellation Trading Sdn Bhd, to acquire the 14-year-old ship known as the Antlia.

The group said the acquisition of the ship by SMF Begonia is at a discount to its current market value, as well as enlarging its asset base.

“The vessel will be chartered to SMF Begonia for its business activities, which mainly cater for the demand for trading of marine fuel oil, as well as the provision of oil bunkering services of marine fuel oil, whilst the remaining nine vessels currently owned by the group will be catered for the demand in the trading of marine gas oil and the provision of oil bunkering services of marine gas oil in Malaysia,” it said.

Source: TheStar