Kintetsu buys Thai firm

Kintetsu World Express, Japan’s second-largest international forwarder, will acquire Thailand’s TKK Logistics Co., Ltd. in stages and make the Bangkok-based firm its consolidated subsidiary.

Kintetsu said in a statement that it has reached an agreement with Kanit Smithivas, the current chairman and sole shareholder of TKK Logistics, to purchase 60 percent of TKK’s shares initially for $6.63 million as of Jan. 5 and the remaining 40 percent over three years.

The deal has been approved by TKK’s board, Kintetsu said.

Kintetsu said TKK has a strong business base centered around logistics services for the automotive and electronic parts industries. It also provides air and ocean freight transporting services.

The Thai company has 685 employees and posted sales of $35 million in its 2007 business year.

The acquisition expands Kintetsu’s range of transported products and client base. TKK owns a number of warehousing facilities, which will expand Kintetsu’s network within Thailand, the Japanese company said.

Firm defers purchase of entire Aboitiz Transport

MANILA, Philippines- Owing to the tightening credit situation, the shipping company which was set to acquire the entire Aboitiz Transport Systems Corp from the Aboitiz group decided to defer the acquisition of the entire stake of the Super Ferry Lines.

In a statement to regulators, holding company Aboitiz Equity Ventures Inc. and Aboitiz & Co. Inc. said it accepted the offer of KGLI-NM Holdings Inc., a joint venture between Negros Navigation Inc. and Dutch company KGL Investment BV, to buy 42-percent stake in Aboitiz Transport for P1.89 billion. The 7 percent of the company is held by the public and will be subject to a tender offer.

KGLI-NM had originally wanted to immediately acquire Aboitiz Transport.

Stephen Paradis, AEV chief financial officer, said the holding company has given the option to KGLI-NM to acquire the rest of the stake anytime between May 1, 2009 to September 30, 2009 at the same price of P1.84 per share plus a premium of 9 ½ percent.

“Because of the global situation, KGLI-NM had a hard time in finding funding for the transaction," Paradis said in a telephone interview.

But he said KGLI-NM is still keen on buying the entire ATS.

AEV owns 1,889,489,607 common shares of ATS while ACO owns 390,322,384
common shares of ATS, representing 77.10 percent and 15.93 percent respectively of the total outstanding ATS capital stock. ACO is the private holding company of
the Aboitiz family and is AEV's largest shareholder.

KGL Investment initiated investments in port and port-related businesses and other logistics related businesses in the Philippines through the establishment of an air-transportation logistics complex in Clark Field, Pampanga, under an agreement signed with the Clark International Airport Corp. in April 2008.

Ryder System agrees to buy Edart Leasing's assets

MIAMI - Transportation management company Ryder System Inc. said Tuesday it has agreed to acquire nearly all the assets of Edart Leasing Company LLC to help expand its reach in the Northeast market.

Ryder will acquire the Hartford, Conn., company's truck leasing, commercial truck rental and contract maintenance businesses. Financial terms of the agreement were not disclosed.

Edart Leasing, a family owned transportation services provider, has nine locations in Connecticut, Massachusetts, and New Jersey. Ryder will acquire Edart's fleet of roughly 1,450 full service lease and 150 rental units, which serve more than 340 contract customers. The company will also acquire roughly 600 vehicles that will be sold in the used truck market.
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In a note to investors late Tuesday, Stifel Nicolaus & Co. analyst David Ross said he expects the deal to add modestly to earnings.

"The company has a solid track record of growing through these small, regional acquisitions," said Ross, who maintained a "Buy" rating on the stock. "We would expect to see more of these over the next few quarters, as the company looks to grow in this difficult economic environment and is likely getting good prices for these deals."

The acquisition is expected to close in January, pending customary closing conditions.