DP World is looking to acquire Australia-based port-to-door logistics services provider Silk Logistics.
It said that its subsidiary, DP World Australia, has entered into a binding Scheme Implementation Deed for the acquisition of 100% of the issued share capital of Silk Logistics Holdings Limited via a Scheme of Arrangement with a cash offer of A$2.14 per share.
The transaction values Silk Logistics's equity at approximately A$174.5 million (US$113.25 million)
DP World said this transaction is subject to shareholder approval of Silk Logistics and standard closing conditions, including necessary regulatory approvals, and is expected to be completed in the first half of 2025.
Silk Logistics operates 21 logistics hubs and 25 warehousing sites across five Australian states.
The Group operates two main business segments: port logistics, which includes wharf cartage services between Australia's major ports, and contract logistics, which involves warehousing and multimodal distribution solutions to support complex supply chain needs.
DP World Australia is a subsidiary of DP World, which handles approximately 10% of global containerised trade. DP World Australia operates four container terminals and three container parks — at Brisbane, Sydney, Melbourne and Fremantle — as well as inland distribution centres and warehouses.
Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, said DP World's acquisition of Silk Logistics marks a significant step forward in strengthening its integrated logistics capabilities and expanding our service offerings.
"This strategic move reinforces our commitment to providing seamless, end-to-end customised solutions for our customers while delivering sustainable value for all our stakeholders," he added.
Glen Hilton, CEO & managing director, Asia Pacific, DP World, noted that this acquisition aligns with the company's strategy to deliver complimentary logistics solutions for a broad customer base across Oceania.
Combining DP World Australia's terminal operations with Silk Logistics’ value add services enhances our capability to deliver enhanced solutions for customers, DP World said.
