Jardine Matheson to swap logistics stakes for equity in Baltrans

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.