DIETARY supplement direct seller DXN Holdings Bhd is chartering a corporate jet for one year at the rate of US$6.15 million (RM27.1 million) if it uses its own pilots. This works out to around RM2.3 million a month.
Its wholly-owned subsidiary DXN Aero Nautic Sdn Bhd has entered into an aircraft charter agreement with charter carrier Luxaviation San Marino Srl and charter manager ExecuJet Asia Pte Ltd to charter a Gulfstream G550 corporate jet for one year, the company said in an exchange filing today (Nov 7).
It said the subject aircraft to be chartered by DXN Aero was currently owned by LSJ Logistics Ltd, a wholly-owned subsidiary of LSJ Global Sdn Bhd, which is also a major shareholder of the company. Hence, it noted that the deal was deemed to be a related party transaction.
LSJ Global, the vehicle of DXN chairman and founder Datuk Lim Siow Jin (picture), is DXN’s largest shareholder with a 68.27% stake.
LSJ Global owned 3.58 billion shares or a 74.3% stake in DXN prior to its IPO in April 2023. DXN was first listred on the main market of Bursa Malaysia in 2003 before being taken private in December 2011.
In its charter agreement, DXN Aero Nautic, formerly known as DXN Biofuels Sdn Bhd, has committed to a minimum of 300 flight hours for the 12-month period at the rate US$22,000 per flight hour or US$20,500 per flight hour, in the event the lessee’s own pilots are operating the aircraft.
At minimum flight hours, that works out to US$550,000 per month based (US$6.6 million for the whole year) or US$512,500 per month (US$6.15 million for the whole year) if flown by its own pilots.
In the exchange filing, DXN said it intended to employ its own pilots to operate the aircraft. As of Oct 23, the company had two pilots on staff.
“The two different rates provide the company with flexibility to utilize the charter manager’s pilots, in the event of pilot shortage. This arrangement allows the company to maintain seamless operations while minimizing the costs associated with hiring additional full-time pilots,” it said.
DXN Aero’s principal activities are the provision of management logistical and marketing services.
For the first six months till Aug 31, 2024, the DXN company has posted a net profit of RM151.5 million on a turnover of RM963.5 million.
DXN shares ended the day at 56.5 sen, its lowest in 52-weeks, valuing the company at RM2.8 billion.
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