DP World Australia to Acquire Silk

Monday, November 11, 2024

Freight & Trade Alliance (FTA) and Australian Peak Shippers Association (APSA) have received notification of the intention of DP World Australia to acquire Silk, with Silk entering into a Scheme Implementation Deed with DP World Australia Limited ('DP World Australia') for the acquisition of 100% of the issued share capital of Silk by way of a scheme of arrangement.

The formal announcement in full is available HERE.

Summary of Conditions

It is important to note that the announcement is subject to key conditions, a summary of which are as follows:

the Independent Expert issuing an Independent Expert's Report which concludes that the Scheme is in the best interests of Silk shareholders (and not changing or withdrawing that conclusion);
approval of the Foreign Investment Review Board ('FIRB'), and receipt of customary consents and waivers from ASIC and ASX;
approval of Silk shareholders at the Scheme Meeting and approval from the Court;
no Target Material Adverse Change, Target Regulated Event or Target Prescribed Occurrence occurring; and
no injunction or other action preventing the Scheme being implemented.

Quotes

Silk Chair, Terry Sinclair, said:
"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. The Board unanimously recommends that Silk shareholders vote in favour of the scheme, subject to the conditions outlined in this announcement."

Silk Chief Executive Officer and Managing Director, John Sood, said:
"Today is an important and exciting day in the history of Silk. 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 Chief Executive Officer and Managing Director, Asia Pacific, Glen Hilton, said:
"DP World Australia is excited about the opportunity to welcome Silk into our portfolio. 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."

Tom Jensen - Head of International Freight & Logistics - FTA / APSA