KUALA LUMPUR (Aug 10): Swift Haulage Bhd plans to buy Singapore’s Watt Wah Petroleum Haulage Pte Ltd, which is involved in the transporting of petroleum products, for S$1.6 million (RM5.18 million) cash. It will also take over Watt Wah's shareholders' loan that amounted to S$8.5 million as on June 30.

In a Bursa Malaysia filing on Wednesday (Aug 10), the integrated logistics service provider said it has entered into a binding order (BO) with Watt Wah’s sole shareholder, DLT Enterprise Pte Ltd for the acquisition. The BO is subject to a definitive share and purchase agreement to be inked between Swift Haulage and DLT.

Besides the cash consideration, Swift Haulage said it will repay Watt Wah's shareholders' loan in full by refinancing the loan within two weeks after the acquisition is completed.

"The amount of the shareholders' loan is subject to changes resulting from further repayment(s) between June 30, 2022 and the completion date," Swift Haulage said.

If it fails to repay the loan in full by refinancing the loan within the set deadline, the entire equity interest of Watt Wah will be reversed, it said.

Swift Haulage did not state why it wanted to acquire Watt Wah, which has an issued share capital of S$500,000, comprising 500,000 shares.

Swift Haulage shares closed one sen or 1.83% lower at 53.5 sen on Wednesday, giving the company a market capitalisation of RM476.05 million.