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Yang Kee Logistics to buy New Zealand peer Fliway for S$52.1m
SINGAPORE'S Yang Kee Logistics has entered into an agreement to purchase New Zealand-listed logistics firm Fliway Group for S$52.1 million.
Under the agreement, Yang Kee will buy all outstanding shares in Fliway for NZ$1.22 per share in cash. Among other things, the scheme is conditional on the approval of Fliway's shareholders and the High Court.
This marks the firm's second major acquisition this year, done with the support of IE Singapore. It had previously acquired Australia logistics firm Axima in March for S$34 million.
According to Yang Kee, this deal would boost the combined group's revenue by S$81.9 million. With the completion of the acquisition, Yang Kee would have a headcount of over 1,050 employees across 12 countries, and an expected revenue of over S$400 million, the group said on Thursday.
"It is part of our vision to strengthen our presence in Oceania as we go global. New Zealand has a stable currency and economic outlook, a growing middle class, and a demand for integrated freight and logistics solutions," said Yang Kee's CEO, Ken Koh.
"We hope to yield greater synergies from the network integration of shared international freight volumes between Fliway and Axima, and cross-selling opportunities in their combined customer bases to Asia," he added.
Fliway is one of New Zealand's largest fully integrated logistics providers.
Separately, Fliway's managing director Duncan Hawkesby said: "This is a significant milestone for Fliway, and reflects our long held view that there are strong growth opportunities that come from leveraging a larger geographic footprint across Oceania and Asia."
He added that being part of the Yang Kee group will provide scale to support Fliway's customers, both in New Zealand and throughout the Asia-Pacific region.
As part of its global growth strategy, Yang Kee worked with IE Singapore to deepen its foothold in these markets, and to enhance its end-to-end supply chain networks. To this end, IE Singapore linked the firm to business development leads, and provided support in feasibility studies as well as financial and legal services.
Additionally, the local logistics firm partnered Spring Singapore to develop relevant skills among its employees. With Spring's support, Yang Kee "developed new business capabilities such as specialised services for the chemicals and oil & gas sectors with the launch of its Chemical Logistics Hub, enabling it to secure contracts with large global chemical clients", the group said.
ANZ is the sole underwriter for Yang Kee's proposed acquisition of Fliway, as well as the earlier acquisition of Axima.