Yang Kee Logistics to acquire NZ company for $52m

The combined Yang Kee group will have over 1,050 employees across 12 countries and an expected revenue of more than $400 million once the acquisition is completed.
The combined Yang Kee group will have over 1,050 employees across 12 countries and an expected revenue of more than $400 million once the acquisition is completed.PHOTO: YANG KEE LOGISTICS

Home-grown company Yang Kee Logistics plans to acquire New Zealand-listed Fliway Group for $52.1 million.

The deal, which will be completed with the support of trade agency IE Singapore, is expected to boost Yang Kee's revenue by $81.9 million and help it gain a stronger foothold in the Oceania market.

Fliway is one of New Zealand's largest fully integrated logistics providers.

The move comes after Yang Kee's first Oceania acquisition - Australian logistics company Axima - in March.

The combined Yang Kee group will have over 1,050 employees across 12 countries and an expected revenue of more than $400 million once the acquisition is completed.

The proposed deal involves Yang Kee acquiring all outstanding stock in Fliway for NZ$1.22 cash per share by way of a scheme of arrangement. The scheme is conditional on the approval of Fliway's shareholders and the courts.

"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 Logistics group chief executive Ken Koh.

"New Zealand also enjoys strong trade relations with Australia, with bilateral trade reaching NZ$24 billion (S$22.4 billion) for the year ended March 2017."

Fliway's managing director Duncan Hawkesby noted: "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.

"Being part of the Yang Kee Group delivers on that and provides scale to support Fliway's customers, both in New Zealand and throughout the Asia-Pacific region."

Yang Kee is partnering IE Singapore closely as it embarks on an acquisition strategy to gain new networks and capabilities to become a global logistics player. IE Singapore worked with Yang Kee to deepen its foothold in these markets and enhance its end-to-end supply chain networks.

A version of this article appeared in the print edition of The Straits Times on October 27, 2017, with the headline 'Yang Kee Logistics to acquire NZ company for $52m'. Print Edition | Subscribe