SLH - Silk Logistics Holdings

[System]

Silk Logistics is a leading Australian-owned logistics business providing an integrated 'port-to-door' service to some of the world's best-known brands.

This agile approach has led to strong revenue growth, and consistent margins and return on capital. The Company's business model is asset-light and uses a tier-1, technology enabled platform to consistently deliver industry leading service outcomes to its blue-chip customer base.

Silk differentiates itself in the market by blending its physical logistics capabilities and scaled national footprint with predictive insights capability, inventory optimisation and supply chain visibility from wharf to warehouse and through to last mile distribution.

The Company operates as two primary divisions and three distinct services – Port Logistics division offering wharf cartage, and Contract Logistics division offering warehousing and distribution services.

The Company has a national footprint with operations in all mainland states in Australia.

It is anticipated that SLH will list on the ASX during July 2021.

Transport & Freight Logistics in Melbourne, Sydney, Adelaide, Brisbane & Perth

For efficient end-to-end service across all your warehousing, wharfing and transportation needs, contact Silk Contract Logistics on (03) 9281 6900.

www.silklogistics.com.au

 

[Dona Ferentes]

Company contact details	https://www.silklogistics.com.au/ Ph: 03 9281 6900
Principal Activities	Integrated Logistics
GICS industry group	TBA
Issue Price	$2.00
Issue Type	Ordinary Fully Paid Shares
Security code	SLH
Capital to be Raised	$70,000,000
Expected offer close date	29 June 2021
Underwriter	Fully underwritten. Shaw and Partners Limited and Morgans Corporate Limited (Joint underwriters and Lead Managers)

 

[Dona Ferentes]

IPO'ed today, opened at midday, at $2.28, ran as high as $2.48 and now $2.42

 

[Dona Ferentes]

 

[Dona Ferentes]

Silk Logistics to be acquired by DP World Australia in $174.5m deal​

By Finance News Network |

Silk Logistics Holdings (ASX:SLH) has entered into a Scheme Implementation Deed with DP World Australia Limited for the acquisition of 100% of its issued share capital through a scheme of arrangement. The proposed transaction values Silk’s equity at approximately $174.5m, with shareholders set to receive cash consideration of $2.14 per share, less any dividends declared before the scheme's completion.

Silk is an Australian logistics and supply chain solutions provider known for its integrated port-to-door logistics services. It offers transport, warehousing and distribution solutions across Australia. The acquisition by DP World Australia, a leading terminal operator and logistics company in Oceania, aligns with the latter’s strategy to strengthen its capabilities in end-to-end supply chain services. The scheme represents a 45.6% premium to Silk’s last closing share price of $1.47 on 8 November 2024, and a 60.6% premium over its one-month volume-weighted average price (VWAP) of $1.33.

The Silk board has unanimously recommended that shareholders support the scheme, conditional upon the absence of a superior proposal and the Independent Expert's conclusion that the scheme is in the best interests of shareholders. Major shareholders representing approximately 46% of Silk’s shares, including Tor Asia Credit Master Fund LP and entities linked to Silk CEO John Sood and Brendan Boyd, have already committed to voting in favour.
Silk Chair Terry Sinclair remarked, “The Board has carefully considered the proposal from DP World Australia and believes it represents compelling value.”

CEO John Sood added, “Today is an important and exciting day in the history of Silk. The proposed transaction recognises the significant investment that Silk has made… We see strong strategic and cultural alignment between Silk and DP World Australia.”

DP World Australia, whose parent company DP World operates one of the world’s largest marine terminal networks, noted that the acquisition would enhance its ability to offer comprehensive logistics solutions across the region. Glen Hilton, CEO and Managing Director of DP World Asia Pacific, commented, “Combining DP World Australia’s terminal operations with Silk’s value-add services enhances our capability to deliver enhanced solutions for customers and to create sustainable value for all stakeholders.”

The scheme’s completion is contingent on approvals from the Foreign Investment Review Board (FIRB), ASIC, ASX, and the Court, alongside a shareholder vote, expected in Q3 FY2025.

Shares in Silk have soared 40% to $2.07 on the back of the news