This article first appeared in The Edge Financial Daily on October 17, 2017 - October 23, 2017

KUALA LUMPUR: In a bid to revive its turnaround plan, Nationwide Express Courier Services Bhd has now came out with a new deal with Airpak Express (M) Sdn Bhd — this time to acquire a smaller portion of Airpak’s business for a lower price.

Nationwide Express announced to Bursa Malaysia yesterday that it is seeking to acquire Airpak’s rights, title and interest in and to its courier service business, including certain assets and liabilities, for RM15 million cash and an issuance of 3.01 million new Nationwide Express shares, at an illustrative price of 73 sen apiece or RM2.19 million.

Nationwide Express’ share price closed at 77 sen yesterday.

Back in November 2016, Nationwide Express proposed to acquire Airpak for RM33.16 million. In January 2017, it also proposed to take over MTR Services Sdn Bhd, MTR Freight Sdn Bhd, and MTR Services (Sarawak) Sdn Bhd for RM40 million — but both agreements lapsed in May 2017 as Nationwide Express sought “alternative structures” to acquire the businesses.

Airpak is currently 90%-owned by its managing director Ong Eng Lee, with another 10% stake held by Lim Kew Wan from Malaysia. The deal also entails Ong as an adviser for Nationwide Express when the acquisition of Airpak is completed.

Nationwide Express said that the acquisition — to be satisfied through a mixture of cash and borrowings — will leverage on its existing strength in the business-to-business segment, and further streamline and rationalise its resources.

“The proposed acquisition is part of Nationwide Express’ overall strategy to capitalise on the rapid growth in demand for e-commerce and online business activities,” said the courier group.