OKH

OKH: Has agreed to acquire a 15% stake in Pan Asia Logistics, an established logistics and supply chai solutions provider, for $21.5m. The acquisition will enable OKH to gain immediate access to a fast growing and established logistics and supply chain solutions provider with extended reach to new geographical markets. Meanwhile, OKH and Pan Asia will be able to capitalise on their inherent strengths and complementary business network to create new value propositions to customers. Being a property developer, OKH has the capability and financial resources to design and develop logistics and warehousing properties specifically for the growing client base and expanding business services of Pan Asia, while at the same time leveraging on Pan Asia’s geographical reach to expand its business network and cross-share market knowledge and info. As a background, Pan Asia is a logistics and supply chain provider, with a diversified customer base of more than 1000 customers and a primary focus on European MNCs. In FY13, Pan Asia achieved a net profit of ~$27.8m. Just a year back, OKH had entered into a JV with Pan Asia to develop, own and manage modern logistic properties across Asia. The JV currently owns three logistics properties, of ~1.1m sf in total, located in Singapore, Malaysia and Korea. OKH currently trades at 8.2x P/B.