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Vibrant to consolidate stake in chemical logistics subsidiary for S$13.5 million

MAINBOARD-LISTED logistics player Vibrant Group plans to consolidate its stake in chemical logistics subsidiary LTH Logistics (Singapore), in a deal inked and disclosed on Thursday.

Under the agreement, Vibrant will buy out vendor Lim Song Wang’s 49 per cent interest in LTH Logistics for S$13.5 million in cash, funded by the group’s internal resources.

Vibrant said in a bourse filing that the planned transaction would give it complete control of LTH Logistics’ cash stream, which it pegged at S$114 million - that is, the net proceeds from the sale and leaseback of a Jurong Island Chemical Hub property at 121, Banyan Drive.

“The group will also be able to gain full control of the target… and accordingly streamline and increase efficiency in the use of the financial resources related thereto,” Vibrant added.

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LTH Logistics provides storage, logistics and warehousing services for both hazardous and non-hazardous chemicals in Singapore and Malaysia.

On a pro forma basis, Vibrant’s full-year net tangible assets per share would have dipped from 29.55 Singapore cents to 27.92 Singapore cents had the transaction gone through on April 30, 2019, it disclosed in its filing, while earnings per share would have inched down from 1.11 Singapore cents to 1.08 Singapore cents if the acquisition were completed on May 1, 2018.

Vibrant shares closed up by 0.2 Singapore cent, or 1.56 per cent, to S$0.13, before the announcement.