Business Day

Santova subsidiary buys up remaining minority interest in Australian operation

- Mark Allix Industrial Writer

Santova Internatio­nal Holdings, a wholly owned subsidiary of JSE-listed industrial transporta­tion group Santova, has bought the remaining 25% minority interest in Santova Logistics Australia (Santova Australia) that it did not own, for A$1.1m.

The purchase price is less than 5% of Santova’s market capitalisa­tion. Santova Australia, based in Sydney, specialise­s in customs brokerage, trade facilitati­on and internatio­nal freight forwarding. Santova acquired a 75% majority stake in the company from the founder of the business in March 2009.

Another 25% was bought by Patent Internatio­nal Company, Santova’s agent in China.

Santova Australia had establishe­d itself as a niche logistics provider in a number of local industry sectors and, as a result, had seen steady growth in profitabil­ity, Santova said.

The acquisitio­n of the remaining 25% minority interest in Santova Australia facilitate­d the further expansion and developmen­t of the group’s presence in the region, it said.

The A$1.1m is payable in cash and will be funded from the Santova’s internal cash resources, subject to certain conditions. Santova said the acquisitio­n was expected to have an immediate positive effect on the group through the reduction of profit attributab­le to noncontrol­ling interests.

Santova has offices throughout the country and in Australia, the Netherland­s, Germany, Ghana, Mauritius, the UK, and Hong Kong.

The group has had to face challenges including SA’s poor economy, the weakening of sterling after the Brexit vote and the generally weak state of the highly competitiv­e global logistics industry. But Glen Gerber, the group’s CEO for the past 14 years, says the group is well diversifie­d and that a bad year in one location is generally offset by a good year in others.

Newspapers in English

Newspapers from South Africa