This allows the Singapore firm to extend third-party-logistics services across New Zealand and Oceania region.
Fliway Group is one of New Zealand’s largest logistics provider, owning 150 vehicles, five warehouses across 12 branches. It has over 40 years of operational experience in New Zealand, covering international freight to domestic deliveries.
The Fliway Group was fully acquired for NZ$1.22 ($0.86) per share and is now wholly owned by Yang Kee and delisted from NZX. Post acquisition, Yang Kee group will see its revenue reach over S$400 million ($300 million), S$81.9 million ($61.6 million) increase in revenue.
“We saw huge opportunities in the Oceania region as both New Zealand and Australia enjoy strong trade relations with Asia, and with each other. This gives us the potential to fully leverage on these key trade lanes, to facilitate cross Oceania trade as well as trade flows between Oceania and Yang Kee’s existing networks in China and South East Asia,” said Ken Koh, Group CEO of Yang Kee Logistics.
The Fliway acquisition was financed by the Australia and New Zealand Banking Group Limited and United Orient Capital, a special situation fund sponsored by the United Overseas Bank Limited.
ANZ is the sole mandated lead arranger, underwriter and bookrunner for Yang Kee’s acquisition of Fliway, as well as the earlier acquisition of Axima.
Yang Kee group will now have a headcount of over 1250 employees in 12 countries, providing end-to-end global supply chain logistics solutions including third party logistics capabilities.
The deal marks the second Oceania acquisition for Yang Kee Logistics. Back in March 2017, it purchased Australian company Axima Pte Ltd for S$34 million ($25.5 million). At that time Yang Kee’s revenue was set around S$150 million ($112.8 million).
Law Chung Ming, group director for Transport & Logistics, International Enterprise Singapore said the work will enhance Singapore’s connectivity to the Southwest Pacific region, allowing Singapore companies to tap its logistics solutions to access the Australia and New Zealand markets.
Led by CEO Ken Koh, Yang Kee has announced their intention to go public by 2020.
“This is a great milestone for both the Fliway Group and Yang Kee, and significantly strengthens our position across the Tasman and in the Asia Pacific Region – providing opportunities to service our customers beyond New Zealand and offering further project options, centres of excellence, career development and progression for our people locally and globally,” said Duncan Hawkesby, managing director of Fliway Group Ltd.