Freight Links: has acquired a 100% stake in San Lu Logistics, for Rmb 14.1m (S$2.7m). Unaudited NAV of San Lu is Rmb 14.7m (S$2.8m). In addition, it will assume San Lu debts of Rmb 18.9m (S$3.6m).
San Lu is engaged in warehouse construction and devt, real estate mgt, consultancy services and the provision of warehousing operations, storage and transportation services.
San Lu owns a 24.8k sm industrial land located within the bonded logistics park in Jiangyin. It has a newly completed bonded warehouse with remaining tenure of 47 yrs (up to 15 May 2058). Jiangyin Bonded Logistics Centre has signed a 3 + 3 years lease contract upon successful completion of acquisition of San Lu.
The acquisition is part of Freight Link’s strategic expansion plans for its logistics business in China.
The stock trades at 7.3x P/E, 0.8x P/B, offers 7.1% historical div yield.