KUALA LUMPUR (March 22): Precision mould designer and fabricator Sanichi Technology Bhd plans to buy a Cessna Citation aircraft for US$2.5 million (RM9.83 million) to fly key personnel frequently in order to maintain strong business relationship overseas.

In a filing with Bursa Malaysia, Sanichi said its wholly-owned subsidiary Sanichi Capital Sdn Bhd has incorporated a US-based company Air King Inc (AKI) in Wyoming to enter into a purchase agreement with the vendor, Steve Wilson.

Sanichi said its overseas business accounted for 88% of its total revenue in its financial year ended Dec 31, 2016.

It added that a well-established customer relationship and prompt reaction to business environment are important in achieving a remarkable financial performance.

Sanichi said the proposed acquisition was due to its customer relationship reengineering programme in Hong Kong, US and Europe which requires key personnel to fly abroad frequently to maintain customers relationship, keep up with business and respond to market promptly.

The proposed incorporation of AKI and acquisition will be funded from internally generated funds.

Sanichi shares closed down one sen or 9.09% at 10 sen for a market capitalisation of RM34.85 million. In a year, its share price has fallen 58.33%.