NCL International Logistics (NCL), Thailand’s listed logistic service provider, today announced that it is planning to acquire a 22.22 per cent holding in Singapore-based Transoffshore Logistics.
This acquisition is expected to help NCL expand its business to the region while benefiting from the technical expertise provided by Transoffshore.
Transoffshore has a paid-up registered capital of S$1 million, divided into one million shares at the par value of S$1 per share.
After the board’s meeting, NCL’s chief executive officer (CEO) Kitti Phua said that the company will acquire 222,222 shares at the par value and the fund will come from its working capital.
“This is a significant step to increase our market share and improve our know-how about crude instillation logistics. Importantly, we will have more high-potential partners to support our growth in the ASEAN,” he said.
Kitti told DEALSTREETASIA that the company plans to set up two more hubs outside Thailand, one is in Singapore and the other in Dubai, as a part of driving itself to be the global logistic provider. The two hubs are expected to have an investment outlay of 30 million-50 million baht ($923,000-$1.54 million). The company is planning to utilise funds raised from its initial public offering (IPO) in the Market for Alternative Investment (MAI), to support this expansion plan.
The hub expansion will boost its competitiveness because it will enjoy more tax exemption from those two countries.
The company board also approved forming of a subsidiary called “Custom Express Company Limited” with a registered capital of five million baht ($151,515) to provide customised service.
NCL will hold 99 per cent stake in Custom Express and the financial source is from its working capital.
The company’s revenue and profit has grown more than 20 per cent each year, for the past three years. In the first six months in 2014, it generated an income of 485 million baht ($15.16 million), up from 434 million baht ($13.56 million) in the same period last year. Of the total revenue, 85-90 per cent came from international logistics and the rest 10-15 per cent from domestic operations.
Currently, the NCL serves customers in more than 180 countries worldwide.