October 26 - Singapore-based Yang Kee Logistics has entered into a scheme implementation agreement (SIA) to acquire 100 percent of the shares New Zealand-based Fliway Group for SGD52.1 million (USD38.2 million).
According to Yang Kee, the acquisition is conditional on the approval of Fliway's shareholders and the high court.
The agreement follows Yang Kee's acquisition of Australian logistics company Axima in March this year.
"It is part of our vision to strengthen our presence in Oceania as we go global," said Ken Koh, group ceo of Yang Kee. "New Zealand has a stable currency and economic outlook… and a demand for integrated freight and logistics solutions.
"New Zealand also enjoys strong trade relations with Australia, with bilateral trade reaching NZD24 billion (USD16.4 billion) for the year ended March 2017. We hope to yield greater synergies from the network integration of shared international freight volumes between Fliway and Axima and cross selling opportunities in their combined customer bases to Asia."
Yang Kee, an end-to-end global supply chain logistics solutions provider, is equipped with specialised equipment to provide project logistics and heavy lift services.
According to Yang Kee, it has been partnering with International Enterprise Singapore in its acquisition strategy, and Spring Singapore to develop its business capabilities in specialised services for the chemicals, and oil and gas sectors.
The acquisition of Fliway, which has a special services team experienced in managing the transport and installation of out-of-gauge (OOG) cargoes, was financed by the Australia and New Zealand Banking Group (ANZ) and United Orient Capital (UOC).
Upon completion of the acquisition, the Yang Kee group will have over 1,050 employees across 12 countries.
