KUALA LUMPUR (Feb 20): Oil trading and bunkering operator Straits Inter Logistics Bhd, which is expanding into inland logistics, is paring down its stake in its wholly-owned logistics unit in favour of a new director in the subsidiary.

In a filing today, Straits Inter Logistics said the unit, Straits Alliance Transport Sdn Bhd (SAT) will issue new shares to be partly subscribed by the new director, James Chai Yiing Jen, who has 15 years of experience in the logistics business.

SAT was incorporated by Straits Inter Logistics on Aug 30, 2018 with an issued capital of RM1 million (one million shares) as the group sought to diversify into land transportation and logistics.

To rope in Chai, SAT will issue 450,000 shares, of which 15,000 will be subscribed by Straits Inter Logistics and 435,000 shares (30% of the enlarged share base) by Chai for an undisclosed sum.

“The aforementioned share subscription will result in the dilution of Straits equity interest in SAT from 100% to 70%,” said Straits Inter Logistics.

Chai, 40, founded transportation services provider Am Alliance Sdn Bhd in 2014 as executive director, focusing on provision of land transportation services particularly to construction players.

“James Chai had resigned as director and sold his entire shares in Am Alliance on Jan 24, 2019 and Feb 1, 2019 respectively,” said Straits Inter Logistics.

He was also executive director for diesel and commercial lubricants distributor Kee Fatt Motor Works Distributor Sdn Bhd between 2004 and 2015.

He graduated with an associate degree in automotive service technology from Ferris State University in 2000.

“With his knowledge and experience and in line with the diversification of the existing principal activities of the group to include land transportation and logistics business, the board had agreed that Chai be appointed as director of SAT on full time employment basis, which he will be responsible for the overall business operations and performance of SAT,” said Straits Inter Logistics.

Shares of Straits Inter Logistics closed half a sen higher at 22.5 sen, giving the group a market capitalisation of RM126.08 million.