DP World Australia has entered a binding Scheme Implementation Deed for the acquisition of 100 per cent of the issued share capital of Silk Logistics Holding Limited.
The arrangement has valued Silk Logistics at approximately $174.5 million, with the transaction expected to be complete in early 2025 subject to shareholder approval and standard closing conditions.
Silk’s Board of Directors unanimously voted in favour of the arrangement and is of the belief it is in the best interests of the company’s shareholders.
Shareholders who collectively hold or control approximately 46 per cent of Silk’s ordinary shares (Tor Asia Credit Master Fund, Karma Beverages Pty Ltd, and BBJJ Investments Pty Ltd) have announced their intention to vote in favour of the scheme.
“Today is an important and exciting day in the history of Silk,” Silk CEO and Managing Director John Sood says. “The proposed transaction recognises the significant investment Silk has made into its national integrated port to door service offering, extensive capabilities and the strong relationships we have built with our dedicated customer base.
“With the benefit of DP World Australia’s infrastructure combined with Silk’s landside expertise, Silk will continue to focus on providing the highest quality services to its customers.
“We see strong strategic and cultural alignment between Silk and DP World Australia, and we look forward to working together to achieve our shared goals.”
Silk Logistics currently operates 21 logistics hubs and 25 warehousing sites across five Australian states and operates in the spaces of both port and contract logistics.
DP World Australia, a subsidiary of DP World, operates four container terminals and three container parks at Brisbane, Sydney, Melbourne and Fremantle, as well as inland distribution centres and warehouses.
DP World currently handles roughly 10 per cent of global containerised trade.
CEO and Managing Director Asia Pacific, DP World Glen Hilton says the acquisition will strengthen the company’s operations in Oceania.
“DP World Australia is excited about the opportunity to deliver complimentary logistics solutions for a broad customer base across Oceania,” Hilton says.
“Combining DP World Australia’s terminal operations with Silk Logistics’ value add services enhances our capability to deliver enhanced solutions for customers.”
“DP World’s acquisition of Silk Logistics marks a significant step forward in strengthening our integrated logistics capabilities and expanding our service offerings,” Group Chairman and CEO DP World Sultan Ahmed bin Sulayem says.
“This strategic move reinforces our commitment to providing seamless, end-to-end customised solutions for our customers while delivering sustainable value for all our stakeholders.”
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