JKH goes for JV with Paris listed firm for freight forwarding biz

Thursday, 5 July 2012 01:54 - - {{hitsCtrl.values.hits}}

Premier blue chip John Keells Holdings (JKH) is going for a joint venture with a Paris listed giant to strengthen freight forwarding operations in Sri Lanka and India.

In a statement JKH, together with Norbert Dentressangle SA – an international transport, logistics and freight forwarding company, listed on the Paris stock exchange, operating in 23 countries and employing 33,000 people – announced that Norbert Dentressangle has signed a Share Purchase Agreement on 4 July 2012 to acquire the John Keells freight forwarding operations in Sri Lanka and India. The transaction is due to be finalised at the end of August 2012. “The acquisition will enable Norbert Dentressangle to strengthen its growing freight forwarding business, in line with its strategy,” the statement added.

As per current laws, foreigners can only hold up to 40% ownership of freight forwarding company. JKH in its FY2012 Annual Report said: “The freight forwarding businesses in India and Sri Lanka plan to enter into a strategic alliance with a global freight forwarding partner to expand their operations in the region.”

JKH’s Transportation industry group witnessed an overall growth during the financial year 2011/12 with both sectors performing better than the previous year. Revenues grew by 29 per cent to Rs. 17.38 billion [2010/11: Rs. 13.43 billion].

Revenues, including associate company revenues, grew by 29 per cent to Rs. 22.60 billion [2010/11: Rs. 18.31 billion].

The Transportation industry group EBIT increased by 18 per cent to Rs. 3.48 billion [2010/11: Rs. 2.94 billion].