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Toll Holdings to offer acquiry of Kimtrans
POSTED: 10:18 a.m. EDT, June 15,2007
Toll Holdings, Australia's largest logistics company, to offer to acquire control of Singapore logistics company Sembawang Kimtrans.
Toll, which currently holds a 26 percent stake in Sembawang, offer S$0.70 for each share, increasing it to S$0.80 in the event that acceptances received exceed 90 percent and the company is entitled to proceed to compulsory acquisition.
The offer would value the company at US$211.4 million.
Melbourne-based Toll, which has more than $841 million to spend on acquisitions after the spinoff of its ports and rail assets into a separate company earlier this month, is keen to build its Asian logistics business to take advantage of booming trade in the region.
"The acquisition of Sembawang will further enhance Toll's strategic position within the Asia region, especially within the marine and mining logistics sector, and will help to drive Toll's strategy to become the preeminent integrated logistics provider in the Asian region," said chief executive Paul Little.
"I have been impressed by the caliber of the management during my time on Sembawang¨s board and am excited to be increasing our stake in a well-managed and profitable business with strong exposure to the high-growth energy and resources market in Southeast Asia," he added.
Toll has secured undertakings from Kimtrans Singapore, a company associated with the executive directors of Sembawang, and Tan Choon Hock, another substantial shareholder, which together with Toll's existing stake amounts to more than 57 percent of Sembawang¨s issued shares. |
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