Silk Logistics Holdings has entered into a Scheme Implementation Deed (SID) with DP World Australia for the acquisition of 100 per cent of the issued share capital of Silk by way of a scheme of arrangement.
Under the terms of the scheme, Silk shareholders will receive total cash consideration of $2.14 per share, less any dividends declared or paid prior to shareholders on or before the date of implementation of the scheme.
The scheme consideration values Silk’s equity at approximately $174.5 million and represents:
a 45.6 per cent premium to the last close of $1.47 on 8 November 2024;
a 60.6 per cent premium to the 1-month volume weighted average price (VWAP) of $1.33 to 8 November 2024; and
a 58.4 per cent premium to the three-month VWAP of $1.35 to 8 November 2024.
Silk’s Board of Directors have unanimously recommended that Silk shareholders vote in favour of the scheme, in the absence of a superior proposal and subject to an Independent Expert concluding that it is in the best interests of the company’s shareholders.
Each Silk Director reportedly intends to vote all of the shares that they hold or control in favour of the scheme, subject to those same qualifications.
“The Board has carefully considered the proposal from DP World Australia and believes it represents compelling value for the company and an attractive outcome for Silk shareholders,” said Silk Logistics Chair, Terry Sinclair.
“The Board unanimously recommends that Silk shareholders vote in favour of the scheme, subject to the conditions outlined in this announcement.”
Silk Logistics CEO and Managing Director, John Sood, commented on the significance of the announcement made today [11 November].
“Today is an important and exciting day in the history of Silk,” he said.
“The proposed transaction recognises the significant investment that 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.”
DP World CEO and Managing Director, Asia Pacific, Glen Hilton, said DP World Australia is excited about the opportunity to welcome Silk into its portfolio.
“This acquisition aligns with our strategy to deliver complementary logistics solutions for a broad customer base across Oceania,” he said.
“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.”
In other news, the first phase of the multi-billion-dollar Coffs Harbour Bypass in New South Wales is complete.
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