LONG-ESTABLISHED global logistics service provider headquartered in Hong Kong specialized in cross-border air freight services, PSI Group Holdings Ltd (PSI), and Nasdaq-listed AIB Acquisition Corporation (AIB ), a publicly traded special purpose acquisition company, announced that they have entered into a definitive agreement for a business combination of AIB and PSI.

Upon closing of the proposed business combination, the two companies will become wholly owned subsidiaries of a newly incorporated Cayman Islands company, PS International Group Ltd ( Pubco ), and Pubco will be the combined company and expects to list its securities on the Nasdaq Stock Market.

PSI - founded in 1993 - is one of the renowned air freight forwarding specialists in Hong Kong, providing global logistics and supply chain service to clients of various industries, including postal operators, e-Commerce merchants, senders and consignees. The company booked US$67.1 million in revenue for the six months ended June 30, 2023, representing a year-on-year growth of 36 per cent.

PSI's profit margin continues to grow significantly. The gross profit was $7.6 million for the six months ended June 30, closing with a record growth of 106 per cent compared to the same period last year. PSI sees strategic priority in growing cross-border e-Commerce capacities. The Company is focused on strategic partnership and co-operations in its global network and continued to invest and enhance its smart integrated logistics system.

Yee Kit Chan, chairman of the board of directors of PSI, said: "Signing this business combination agreement with AIB is a pivotal moment for us. The merger is a milestone in our journey to go public in the US, aligning perfectly with our vision in expanding our global presence and enhancing our network in the international logistics arena, making cross-border trade easier and creating more value for our customers and stakeholders globally."

Eric Chen, AIB's CEO, said: "We are excited to work with PSI and hope to generate additional value for our shareholders."

The business combination values PSI at a total pre-money enterprise value of approximately $200 million, according to Yahoo Finance.