Jardine Matheson Holdings plans to sell stakes in money-losing logistic operations to Baltrans Holdings in return for a 20 per cent stake in the freight forwarding firm. Jardine's exit from the business comes as the logistics industry consolidates amid a harshly competitive environment, while Baltrans said the purchase would help it cut costs. Baltrans will issue 60.3 million shares - or 25 per cent of its existing shares - to buy Jardine Logistics Holdings and 60 per cent of Malaysia-based Jardine Logistics Services. Based on Friday's closing price of HK$2.10, the transaction was worth HK$126.6 million, Baltrans said. Following the deal Jardine Asian Holdings would own 20 per cent of Baltrans' enlarged capital base and be entitled to one board seat. 'There is a strong trend towards consolidation in the international logistics sector to provide manufacturers the services they require to supply global markets,' said James Riley, director of Jardine Matheson. Jardine's logistic operations lost HK$29.6 million during the 10 months ending October 31, on sales of HK$1.57 billion. The operations lost HK$37.2 million last year on sales of HK$1.68 billion. Baltrans has bought logistics interests in Singapore, Canada and China in the past year. It said the Jardine acquisition would boost its presence in Britain and Europe. Jardine began as Hong Kong's dominant trading firm in the 19th century and its business includes freight forwarding, warehousing and third party supply-chain services. Baltrans must secure shareholder approval for the transaction.