DP World to Pay A$2.14 Cash per Share in Silk Logistics Acquisition
The Supreme Court of New South Wales has approved DP World Australia’s acquisition of Silk Logistics, paving the way for a $2.14 per share cash payout to Silk shareholders and imminent suspension of Silk shares on the ASX.
- Supreme Court approves scheme of arrangement for Silk Logistics acquisition
- DP World Australia to acquire all Silk shares at A$2.14 each
- Scheme expected to become effective upon ASIC lodgement
- Silk shares to be suspended from ASX trading post-approval
- Implementation date set for 18 August 2025, with record date on 11 August
Court Approval Clears Path for Acquisition
Silk Logistics Holdings Limited (ASX, SLH) has reached a critical milestone in its proposed acquisition by DP World Australia Limited, with the Supreme Court of New South Wales granting formal approval to the scheme of arrangement. This legal endorsement is a key step that allows the transaction to proceed towards completion, subject to final regulatory filings.
What This Means for Silk Shareholders
Once the court’s orders are lodged with the Australian Securities and Investments Commission (ASIC), the scheme will become effective. Silk shareholders recorded on the company’s register at 7, 00pm Sydney time on 11 August 2025 will be entitled to receive a cash payment of A$2.14 per share. This offer represents the agreed consideration from DP World Australia for the full acquisition of Silk’s shares.
Trading Suspension and Implementation Timeline
Following the court approval, Silk has announced it will request suspension of its shares from trading on the ASX at the close of business on 6 August 2025. The formal implementation of the scheme is expected on 18 August 2025, when the transaction will be executed and shareholders compensated accordingly. These dates remain subject to change, but the company has committed to keeping the market informed of any adjustments.
Strategic Implications for the Logistics Sector
This acquisition marks a significant consolidation in the Australian freight and supply chain sector. DP World Australia, a major global logistics player, is expanding its footprint by integrating Silk’s operations. For Silk shareholders, the deal offers immediate liquidity at a fixed price, while for the broader market, it signals ongoing consolidation trends and competitive repositioning within logistics services.
Looking Ahead
With court approval secured, attention now turns to the final procedural steps and the smooth execution of the scheme. Investors will be watching closely for the lodgement confirmation with ASIC and the subsequent payment to shareholders. The suspension of Silk shares also raises questions about the company’s future identity and operational integration under DP World’s ownership.
Bottom Line?
As Silk Logistics prepares to exit the ASX, the market braces for the ripple effects of DP World’s strategic expansion.
Questions in the middle?
- Will DP World maintain Silk’s existing operations or integrate them fully?
- How might this acquisition influence competitive dynamics in Australian logistics?
- Are there any regulatory or operational risks that could delay the scheme’s implementation?