Keppel stakes a share in Vietnamese freight forwarding

Vietnam - Keppel Logistics has announced an agreement to acquire a 40% stake of Indo-Trans Logistics Vietnam (ITL Vietnam), a sea-land-air freight forwarder and professional cargo consolidator, for US$1.6 million.

ITL Vietnam is based in Ho Chi Minh City and is the logistics solutions arms of In Do Trans Logistics Corporation Group. The freight forwarder currently owns and operates several warehouses in Ho Chi Minh City and Hanoi.

Recognised as a market leader in the Vietnamese freight forwarding and transport logistics market, ITL Vietnam is one of the top 500 Vietnamese companies.

The acquisition price between the two companies had taken into account profits of ITL Vietnam's logistics division last year, whose net tangible assets alone amounted to US$1.97 million.

Keppel Telecommunications & Transportation Ltd (Keppel T&T) said the condition of the acquisition, which is expected to be completed in the third quarter of 2008, is conditional on the approval of the relevant authorities.
The deal is not expected to have any material impact on Keppel T&T's net tangible assets and earnings per share for the current financial year.