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Yang Kee Logistics completes S$52.1m acquisition of New Zealand peer Fliway

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YANG Kee Logistics on Thursday said it has completed the acquisition of New Zealand listed company, Fliway Group, for S$52.1 million - making it the first and largest Singaporean third-party logistics player to operate in New Zealand and the Oceania region.

According to the homegrown logistics firm, this new acquisition will boost the group's revenue by S$81.9 million, bringing its total revenue to over S$400 million. In addition, the group will have a combined headcount of over 1,250 employees in 12 economies across Australia, China, Hong Kong, South-east Asia and the US.

Following the deal announced last October, Yang Kee has acquired all the outstanding shares in Fliway for NZ$1.22 per share in cash by way of a scheme of arrangement. This constitutes a change of control of Fliway, which is now wholly owned by Yang Kee, and Fliway has delisted from the New Zealand Exchange with effect from Jan 4, 2018, the company said.

"Our vision as a homegrown logistics player has always been to go global... We saw huge opportunities in the Oceania region as both New Zealand and Australia enjoy strong trade relations with Asia, and with each other," said Yang Kee Logistics' group chief executive officer, Ken Koh.

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"This gives us the potential to fully leverage these key trade lanes, to facilitate cross Oceania trade, as well as trade flows between Oceania and Yang Kee's existing networks in China and South-east Asia," he added.

Yang Kee's latest acquisition marks the firm's second major Oceania purchase, done with the support of IE Singapore. It acquired in March 2017 Australian logistics firm Axima for S$34 million.

Said IE Singapore's group director for transport and logistics, Law Chung Ming: "With the combined strengths of Axima and Fliway, Yang Kee now has stronger global networks and supply chain capabilities. This enhances Singapore's connectivity to the South-west Pacific region, allowing Singapore companies to tap its logistics solutions to access the Australia and New Zealand markets."

The deal was financed by the Australia and New Zealand Banking Group (ANZ), as well as United Orient Capital, a special situation fund sponsored by United Overseas Bank. ANZ is the sole mandated lead arranger, underwriter and bookrunner for the company's acquisition of Fliway and its previous acquisition of Axima.

Founded in 1990, Yang Kee Logistics is an end-to-end global supply chain logistics solutions provider. Fliway is one of New Zealand's largest fully integrated logistics provider with over 150 vehicles across 17 sites in the country.