AHG sells re­frig­er­ated lo­gis­tics arm

Australian Transport News - - Contents -

Au­to­mo­tive Hold­ings Group says un­so­licited ap­proach came with the right price

AU­TO­MO­TIVE HOLD­INGS GROUP ( AHG) is in the process of sell­ing its re­frig­er­ated lo­gis­tics di­vi­sion to Chi­nese in­vest­ment firm HNA Group ( In­ter­na­tional) for $ 400 mil­lion in cash and debt.

The sale in­volves own­er­ship of Rand, Har­ris, Scott’s and JAT pass­ing to HNA- owned firm CC Lo­gis­tics ( Australia), with AHG gain­ing $ 280 mil­lion and HNA ul­ti­mately as­sum­ing $ 120 mil­lion in fi­nance lease li­a­bil­i­ties.

“HNAI has in­di­cated a com­mit­ment to grow­ing and con­tin­u­ing to in­vest in the re­frig­er­ated lo­gis­tics sec­tor, both in­ter­na­tion­ally and in Australia,” AHG CEO and MD John McCon­nell says.

“As an ex­pe­ri­enced par­tic­i­pant in the lo­gis­tics sec­tor, HNA will con­tinue to de­liver qual­ity ser­vices to cus­tomers and we strongly be­lieve that the busi­ness will have a very pos­i­tive fu­ture un­der its new own­ers.”

AHG Lo­gis­tics CEO Stephen Cleary will re­main with the Re­frig­er­ated Lo­gis­tics busi­ness as CEO and will be sup­ported by the ex­ist­ing man­age­ment team and em­ploy­ees of the busi­ness.

“AHG has pre­vi­ously an­nounced it would ex­plore all op­por­tu­ni­ties to max­imise share­holder value from the Re­frig­er­ated Lo­gis­tics busi­ness,” AHG chair­man David Grif­fiths says.

“Al­though the re­struc­tur­ing ini­tia­tives are de­liv­er­ing a sig­nif­i­cantly im­proved fi­nan­cial per­for­mance, the sale pro­vides AHG with the op­por­tu­nity to re­alise a cer­tain value for share­hold­ers that re­flects this con­tin­u­ing im­prove­ment.

“The sale also pro­vides AHG with both the re­sources for fur­ther growth in our au­to­mo­tive op­er­a­tions and scope for cap­i­tal man­age­ment.”

Com­ple­tion is slated for the first half of 2018, sub­ject to reg­u­la­tory ap­proval.

This is the third high-profile HNA-re­lated in­vest­ment lo­cally this year, with the Hong Kong­head quar­tered firm with roots in Hainan Is­land hav­ing picked up 19 per cent in and an al­liance part­ner­ship with Vir­gin Australia, and be­ing in­volved in an eastern state of­fice tower-fo­cused real es­tate in­vest­ment trust.

AHG’s as­sets are des­tined for HNA Mod­ern Lo­gis­tics, the op­er­a­tions of which in­clude trailer ser­vices, air, land and sea equip­ment fi­nance and leas­ing, along with other ser­vices Fleet Care ( not to be con­fused with Aus­tralian leas­ing firm Fleet­care), Fleet Pro­tect, and Fleet In­tel­li­gence.

That HNA arm will gain a for­mer AHG di­vi­sion that is show­ing the ben­e­fit of a sus­tained re­struc­tur­ing.

“As an ex­pe­ri­enced par­tic­i­pant in the lo­gis­tics sec­tor, HNA will con­tinue to de­liver qual­ity ser­vices”

John McCon­nell

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