Chi­nese com­pany HNA In­ter­na­tional has ter­mi­nated its agree­ment to ac­quire Au­to­mo­tive Hold­ings Group’s re­frig­er­ated lo­gis­tics busi­ness

Australian Transport News - - Contents -

CHI­NESE COM­PANY HNA

IN­TER­NA­TIONAL has ter­mi­nated its agree­ment to ac­quire Au­to­mo­tive Hold­ings Group’s (AHG) re­frig­er­ated lo­gis­tics busi­ness, the Aus­tralian com­pany has an­nounced.

The de­ci­sion comes af­ter AHG an­nounced in June that it would not meet the orig­i­nal dead­line for the $400 mil­lion deal for the sale of its Rand, JAT, Har­ris and Scott’s Re­frig­er­ated Freight­ways busi­nesses.

AHG said at the time that it was still wait­ing on ap­proval from the For­eign In­vest­ment Re­view Board (FIRB), but added that HNA had also asked it to al­ter the terms of the deal. AHG man­ag­ing di­rec­tor John McCon­nell says while he is “dis­ap­pointed with this out­come”, it would now al­low the Re­frig­er­ated Lo­gis­tics man­age­ment team to fo­cus fully on run­ning the busi­ness.

“HNA made an un­so­licited of­fer for the Re­frig­er­ated Lo­gis­tics di­vi­sion last year and we en­gaged with HNA,” he says.

“Un­for­tu­nately since that ap­proach HNA has run into liq­uid­ity prob­lems, which com­bined with the de­layed FIRB process left the con­di­tions prece­dent un­able to be sat­is­fied within an agreed time­frame.”

“The in­tent was al­ways to com­plete the in­vest­ment phase of the trans­for­ma­tion pro­gram and cre­ate op­tion­al­ity re­gard­ing the fu­ture for Re­frig­er­ated Lo­gis­tics and we will main­tain our fo­cus on that.”

The re­frig­er­ated lo­gis­tics di­vi­sion recorded a net profit of $780,000 dur­ing the first half of the 2017-18 fi­nan­cial year, up from a loss of $2.2 mil­lion in the pre­vi­ous cor­re­spond­ing pe­riod, on the back of $291.3 mil­lion in rev­enue. Yet the com­pany said in May that its sec­ond-half trad­ing had been im­pacted by the sale process and its rel­a­tively long lead time to com­ple­tion.

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