Silk Logistics Holdings Limited has entered a Scheme Implementation Deed (SID) with DP World Australia Ltd for the acquisition of 100 per cent of the issue share capital of Silk by way of a scheme arrangement.
Under this Scheme, Silk Logistics shareholders will receive cash consideration of $2.14 per Silk share, excluding any dividends declared or paid prior to the Scheme’s implementation.
Silk’s Board of Directors is strongly recommending company shareholders to vote in favour of the scheme, following an Independent Expert’s conclusion that doing so is in the best interests of shareholders.
Among the Board of Directors is Silk Chair, Terry Sinclair and Silk Managing Director, John Sood—who has been acting in the role since May of this year—both of whom are in support of the SID.
“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,” he said.
“The Board unanimously recommends that Silk shareholders vote in favour of the scheme, subject to the conditions outlined in this announcement.”
Sood added a similar sentiment, recognising the similarities between Silk and DP World Australia.
“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 Asia Pacific Chief Executive Officer and Managing Director, Glen Hilton, expressed the company’s enthusiasm in approaching Silk.
“DP World Australia is excited about the opportunity to welcome Silk into our portfolio,” he said.
“This acquisition aligns with our strategy to deliver complementary logistics solutions for a broad customer base across Oceania.
“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.”
Silk Logistics announced the appointment of John Sood as Managing Director here following Brendan Boyd’s retirement from the executive role.