KUALA LUMPUR (April 15): SMTrack Bhd has inked an agreement with Dexma Express Sdn Bhd to explore investment opportunities in Citilink's upcoming operation in Malaysia.

SMTrack, in a bourse filing today, said it had signed a memorandum of understanding (MoU) on April 13 with Dexma, which will be in effect for one year and can be renewed.

Dexma is a Penang-based company specialising in sales of carriage by air services for both passengers and cargo.

Meanwhile, Citilink is an Indonesia-based company principally involved in the domestic and international carriage by air services, whether through scheduled or charter flights, for passengers and cargo. It is a low-cost brand of Garuda Indonesia, set up to operate shuttle services between Indonesian cities.

SMTrack said Dexma has establish a partnership program with Citilink to be the appointed general sales agent for air carriage services of passenger and cargo. It said Dexma will establish another partnership program with Citilink to set up its operations in Malaysia.

As part of the MoU, SMtrack will acquire a 60% stake in Dexma's operation for RM2.8 million. Dexma will then change its name to CITILINK Aviation Malaysia Sdn Bhd and obtain an Air Operator Certificate and any other licences or permits required for the purpose of Citilink Malaysia's operation.

SMTrack, currently actively traded on the bourse, is up by 2.5 sen or 21.7% to 14 sen. Some 19.35 million shares have been exchanged.