Silk Logistics has announced a postponement of its shareholder Scheme Meeting due to an extended review by the Australian Competition and Consumer Commission (ACCC) of DP World Australia’s proposed acquisition.
- Scheme Meeting originally set for 20 June 2025 postponed
- ACCC decision on acquisition delayed until 10 July 2025
- Scheme Implementation Deed End Date of 30 June 2025 not yet extended
- Foreign Investment Review Board approval expected after ACCC clearance
- Silk to seek Supreme Court order to reschedule Scheme Meeting
Background to the Delay
Silk Logistics Holdings Limited (ASX, SLH) has informed the market that its planned Scheme Meeting, originally scheduled for 20 June 2025, will be postponed. This decision follows the Australian Competition and Consumer Commission’s (ACCC) resumption and extension of its review into the proposed acquisition of Silk by DP World Australia Limited. The ACCC’s new decision date is set for 10 July 2025, well beyond the current meeting date and the Scheme Implementation Deed’s (SID) End Date of 30 June 2025.
Regulatory Hurdles and Timing Challenges
The delay highlights the complex regulatory environment surrounding major logistics sector acquisitions. The ACCC’s extended review reflects ongoing scrutiny of competitive impacts in the freight and shipping industry. Meanwhile, the Foreign Investment Review Board (FIRB) approval, another critical condition precedent for the Scheme to proceed, is also expected to await the ACCC’s clearance before granting its consent.
Silk’s announcement clarifies that while the SID does not automatically terminate on the End Date, no formal extension has yet been agreed between the parties. This leaves the transaction timeline in a state of uncertainty, with Silk now seeking a Supreme Court of New South Wales order to postpone the Scheme Meeting until a new date can be fixed.
Implications for Shareholders and Market Participants
For Silk shareholders, the postponement means a longer wait to vote on the acquisition proposal. The delay could also affect market sentiment, as investors weigh the regulatory risks and the potential for further timetable shifts. The involvement of the Supreme Court underscores the legal complexities that can arise when regulatory approvals and contractual deadlines collide.
DP World Australia’s acquisition ambitions remain intact, but the drawn-out approval process serves as a reminder of the challenges in consolidating logistics assets in a highly regulated environment. The outcome of the ACCC’s review will be pivotal in determining whether the deal proceeds and under what conditions.
Looking Ahead
Silk has committed to updating the market once a new Scheme Meeting date is set, signaling ongoing engagement with regulators and stakeholders. The extended timeline also provides additional space for both parties to negotiate any necessary amendments to the Scheme Implementation Deed or address regulatory concerns.
Bottom Line?
The extended ACCC review and resulting delay cast a shadow over the acquisition’s timeline, with regulatory hurdles now front and centre.
Questions in the middle?
- Will the parties agree to extend the Scheme Implementation Deed End Date?
- What conditions might the ACCC impose if it approves the acquisition?
- How will the delay impact Silk’s share price and investor confidence?