Silk Logistics soars after agreeing to buyout from DP World
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The news: The board of Silk Logistics has unanimously agreed to a buyout from Dubai-based DP World, which is Australia's biggest ports operator.
The numbers: Under the deal, shareholders of Melbourne-based Silk will receive cash consideration of $2.14 a share, a 45.6% premium to its last closing price of $1.47 on Friday. Silk said its top shareholders controlling about 46% of the equity had agreed to vote in favour of the deal.
Silk Logistics shares were up nearly 42% to $2.08 in early trading on the ASX.
The context: Silk Logistics’ board unanimously recommended the deal in the absence of a superior proposal and subject to an independent expert concluding the deal is in the best interests of shareholders.
CEO John Sood said the deal recognises the significant investment Silk has made in its port-to-door service offering as well as its dedicated customer base. DP World Asia Pacific CEO Glen Hilton said the acquisition aligned with its strategy to deliver complimentary logistics solutions for a broad customer base across Oceania.
The deal is expected to be completed in the third quarter of FY25.
The source: ASX
