Silk Logistics Shareholders Overwhelmingly Approve $174.5M DP World Takeover
Silk Logistics Holdings shareholders overwhelmingly approved the $174.5 million acquisition by DP World Australia, endorsing a 45.6% premium cash offer. The deal now awaits final court approval to complete by mid-August.
- Shareholders approve scheme with 99.09% votes in favour
- Acquisition values Silk at approximately $174.5 million
- Offer price of $2.14 per share represents a 45.6% premium
- Independent Expert and Silk Board unanimously recommend the deal
- Regulatory approvals secured; final court hearing scheduled for 6 August
Shareholder Meeting Confirms Strong Support
Silk Logistics Holdings Limited (ASX, SLH) convened its Scheme Meeting on 1 August 2025 to vote on the proposed acquisition by DP World Australia Limited. The meeting, chaired by Silk’s Board Chair Terry Sinclair, saw a decisive endorsement of the scheme of arrangement, with over 99% of votes cast in favour. This overwhelming support reflects shareholder confidence in the premium cash offer and the strategic rationale behind the transaction.
Attractive Premium and Independent Validation
The acquisition offer values Silk at approximately $174.5 million, with a cash price of $2.14 per share. This represents a 45.6% premium to Silk’s last closing price before the deal announcement and a premium exceeding 58% relative to the three-month volume weighted average price. The Independent Expert, Kroll Australia Pty Ltd, has affirmed that the scheme is in the best interests of Silk shareholders, assuming no superior proposal emerges. The Silk Board unanimously recommends shareholders vote in favour, citing the certainty of value and risk mitigation benefits.
Regulatory Hurdles Cleared, Court Approval Pending
The transaction faced a delay due to a thorough review by the Australian Competition and Consumer Commission (ACCC), which ultimately did not oppose the scheme. Additionally, the Foreign Investment Review Board (FIRB) granted approval, satisfying key regulatory conditions precedent. The final hurdle remains the Supreme Court of New South Wales’ approval, with a second court hearing scheduled for 6 August 2025. Provided court approval is granted and no adverse events occur, the scheme is expected to become effective shortly thereafter.
Implementation Timeline and Next Steps
If the scheme proceeds as planned, Silk shares will be suspended from trading on 6 August, with the record date for entitlements set for 11 August. The scheme consideration payment to shareholders is anticipated on 18 August 2025, marking the formal completion of the acquisition. Post-implementation, Silk will be delisted from the ASX and integrated under DP World Australia’s operations.
Risks and Considerations for Shareholders
While the scheme offers a compelling premium and certainty of value, shareholders who vote against the scheme retain exposure to Silk’s standalone business risks, including upcoming debt refinancing challenges. The directors disclosed their own financial interests in the transaction, with CEO John Sood’s employment terms remaining largely unchanged post-acquisition. Shareholders are advised to consider the full Scheme Booklet and Independent Expert reports before finalising their decisions.
Bottom Line?
With shareholder approval secured, all eyes now turn to the court’s final verdict and the smooth execution of the $174.5 million deal.
Questions in the middle?
- Will the Supreme Court approve the scheme without modifications on 6 August?
- Could any unforeseen market or regulatory developments delay or derail the transaction?
- How will DP World Australia integrate Silk’s operations post-acquisition to realise synergies?
