By Xavier Kong
A BOURSE filing made by Xin Hwa Holding Bhd announced that the logistics player has entered into a Memorandum of Understanding (MoU) on March 19 with Indonesia-based PT Pos Logistik Indonesia, a subsidiary of state-owned PT Pos Indonesia.
The aim is to cooperate and create synergies by utilising the assets and resources of both companies, serving as a basis for business development of both parties. The companies aim to enter into a definitive cooperation agreement at a later date.
The MoU is valid for a year from March 19, with extensions depending on the mutual agreement of both companies.
This MoU acts in tandem with Xin Hwa’s plan to expand its logistics business into the Indonesian market, and is not expected to have any effects on the company’s earnings and net assets for the financial year ending March 31, 2020.
Yesterday, Xin Hwa’s shares closed at 42 sen, down 11.5 sen, with 5.55 million shares traded. – March 20, 2020
