KUALA LUMPUR (June 20): Pahang-controlled Pasdec Holdings Bhd is diversifying into the aviation sector, a move which could see the company developing and operating a flying school, apart from offering maintenance, repair and overhaul services.
In a statement to Bursa Malaysia on Tuesday, Pasdec, whose businesses include property development and brick manufacturing, said its wholly-owned subsidiary Pahang Aircraft Industries Sdn Bhd (PAI) has signed an MoU with the Malaysian Aviation Training Academy Sdn Bhd (Mata) to jointly develop aviation facilities on a 12ha tract in Kuantan, Pahang.
"Information defined in the MoU as confidential information shall be treated and kept as confidential and disclosed only by the receiving party to its professional advisors involved in this collaboration on a need to know basis. Save for the confidentiality clause, which is legally binding and may give rise to contractual rights and liabilities, the MoU is not a legally binding contract and shall not give rise to any contractual rights and liabilities," Pasdec said.
Under the MoU, which is valid for a year, Pasdec said it will spearhead the development of the land. The alienation of the land is still subject to Pahang government approval.
Mata is expected to lend its aviation expertise to the collaboration by preparing a detailed business partnership proposal, according to Pasdec. Both parties could enter into more definitive agreements later to implement their business plans, Pasdec said.
However, no further details such as the value of the land and proposed development were specified in Pasdec's announcement.
The company already has an established property development portfolio. According to Pasdec's website, the group's focus will be on its townships in Pahang. These include projects in Kuantan, including Bandar Putra in Tanjung Lumpur and Bandar Damansara Kuantan. The group also undertakes real estate projects in Raub and Rompin.
According to Pasdec, brick manufacturing was the largest revenue contributor at 53% while property development made up 41% in its latest quarter ended March 31.
Perbadanan Kemajuan Negeri Pahang, the investment arm of the state government, owns 52% of Pasdec, according to updates on its website.
This story appeared in The Edge Financial Daily on June 20, 2012.