Australia's Silk Logistics rises on deal to acquire Fremantle Freight & Storage

Silk Logistics Holdings

22/07/2022 04:40

** Shares of Silk Logistics  SLH.AX  rise as much as 3.3% to
A$2.190, their highest since June 10
    ** The logistics firm enters https://www.asx.com.au/asxpdf/20220722/pdf/45c2dk436876mf.pdf
 into a binding agreement to acquire the Fremantle Freight &
Storage Group via the acquisition of Brightflow Enterprises Pty
Ltd
    ** Deal price consists of A$23.6 mln ($16.32 mln) payable
upfront with a further A$7.8 mln payable contingent on achieving
agreed financial milestones for period ending July 31, 2023
    ** Deal is expected to contribute positively to co's group
earnings immediately and be earnings per share accretive from 
the first full year of ownership
    ** The acquisition adds immediate scale to Silk's WA
(Western Australia) footprint, says SLH
    ** Stock rises for third consecutive session
    ** As of last close, SLH down ~4.1% YTD
    



($1 = 1.4457 Australian dollars)

 (Reporting by Upasana Singh in Bengaluru)
 ((Upasana.Singh@thomsonreuters.com))