Transmile shareholders hold on “for now”

Pos Malaysia and Services Holdings Bhd has decided "for now" to hold on to its 14.99 per cent stake in debt-laden air cargo company, Transmile Group Bhd. The duo will, however, review its air cargo arrangement with Transmile when the contract expires end-March 2009. "We have nothing on the plate right now (to sell Transmile) […]


Pos Malaysia and Services Holdings Bhd has decided "for now" to hold on to its 14.99 per cent stake in debt-laden air cargo company, Transmile Group Bhd. The duo will, however, review its air cargo arrangement with Transmile when the contract expires end-March 2009.

"We have nothing on the plate right now (to sell Transmile) but will review the handling of our cargo by Transmile for Sabah and Sarawak routes," said Pos Malaysia executive director and group chief operating officer Abu Huraira Abu Yazid.

He said that Pos Malaysia needed time to review the situation and could not immediately terminate its contract with Transmile as "someone will still need to fly our cargo."

"We want to see Transmile’s financial performance prior to our final review," Huraira said, adding that Transmile at its AGM and EGM on Wednesday had proposed to issue new shares as part of a debt-to-equity plan to resolve its debts and turn around.

Transmile had planned to take care of its debts ¨C amounting to RM535.8 million (US$164 million) ¨C first while waiting to dispose of all its four MD-11s airplane, valued at about US$45 million each.