Linfox share buys gain more attention

Both company and founder Lindsay Fox are growing stakes in other listed T&L firms

Linfox share buys gain more attention
Linfox is on the move with shares.


Share purchases by Lindsay Fox and Linfox in the transport and logistics (T&L) space have become hard to ignore, with even the mainstream press taking notice.

Linfox hit headlines mid-December with a $6.8 million buy of K&S Corporation shares.

Earlier this week, the company raised holdings from 8.46 per cent to 9.57 per cent of K&S, paying $470,280 for 271,255 shares.

Judging by the top-20 shareholders stated in the K&S 2015 annual report, that could be the second-highest individual holding.

It is but the latest of a string of more than 30 share bites and nibbles that have come every few days.

Likewise, as the Australian Financial Review has already noted, Lindsay Fox’s vehicle, Alljet Investments, has been taking a series of small chunks of ports-focused eastern states firm Chalmers over the past few years.

As of mid-February, when it spent nearly $46,000 on more than 15,000 shares, Alljet has 17 per cent of Chalmers, recently built on purchases weekly or every few weeks.

This seems to have gained momentum at the start of last year, when the shareholding was 10.57 per cent, after a hiatus two and a half years.

The buys put Fox in second position in the company, just below container parks director Gary Chalmers with 19.37 per cent.

"I can confirm that we recently acquired shares in K&S Corporation Limited," a Linfox spokeswoman says.  

"The business has held shares in K&S Corporation for several years.  

"We continue to see value in the stock at their current levels and have taken the opportunity to expand our holding."

Fox is not the only T&L player with an interest in Chalmers, with Qube Equity having 4.09 per cent stake.

Meanwhile, K&S is watching developments at major client Arrium, for which it has a number of transport and logistics contracts in place hauling finished steel.

Arrium is in voluntary administration with difficulties centred on its Whyalla steel works and mining operations, neither of which are related to the contracts.

A week ago, K&S said it was in talks with administrator company Grant Thornton "regarding the ongoing provision of transport and logistics services to the Arrium Distribution Business.

"Under the Corporations Act, the voluntary administrators at Grant Thornton, are personally liable for the payment of services provided by K&S Corporation while Arrium remains in voluntary administration.

"K&S Corporation anticipates that amounts owing by Arrium for services provided up to 6 April 2016 will not be paid within normal trading terms and are subject to the voluntary administration process conducted by Grant Thornton.

"K&S Corporation understands that Arrium’s lenders do not have security over its assets."

Since then, Korda Mentha has taken over Arrium’s administration but there has been no public response to that development from K&S.

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