26 Oct 2017

  • Yang Kee’s combined group revenue to increase by S$81.9 million with acquisition of 100% of the shares in New Zealand Exchange Mainboard listed company, Fliway Group Ltd
  • Yang Kee partners International Enterprise Singapore closely on international manpower strategies to support its global expansion

MR No.: 046/17

Singapore, Thursday, 26 October 2017

  1. Yang Kee Logistics Pte Ltd (“Yang Kee”) is pleased to announce that it has entered into a Scheme Implementation Agreement (“SIA”) with New Zealand Exchange (“NZX”) Mainboard listed company, Fliway Group Ltd (“Fliway”). This will be Yang Kee’s second major Oceania acquisition this year with the support of International Enterprise (“IE”) Singapore.

  2. The acquisition value of S$52.1 million for 100% of the shares in Fliway would boost the group’s revenue by another S$81.9 million with a stronger foothold in the Oceania market. This announcement comes on the back of its first Oceania acquisition of Australia logistics company Axima Pty Ltd (“Axima”) in March this year1. The combined Yang Kee group will have a headcount of over 1050 employees across 12 countries, and a revenue of over S$400 million once the acquisition is fully completed.

  3. Under the SIA, it is proposed that Yang Kee acquires all the outstanding shares in Fliway for NZ$1.22 cash per share by way of a scheme of arrangement. The scheme is conditional on the approval of Fliway’s shareholders and the High Court, amongst other things.

  4. “It is part of our vision to strengthen our presence in Oceania as we go global. New Zealand has a stable currency and economic outlook, a growing middle class, and a demand for integrated freight and logistics solutions. New Zealand also enjoys strong trade relations with Australia, with bilateral trade reaching NZ$24 billion for the year ended March 20172. We hope to yield greater synergies from the network integration of shared international freight volumes between Fliway and Axima and cross selling opportunities in their combined customer bases to Asia,” said Mr Ken Koh, Group CEO of Yang Kee Logistics.

  5. Fliway is one of New Zealand’s largest fully integrated logistics provider. Having over 40 years of operational experience in New Zealand, it has established strong domestic capabilities3 in transport and warehousing with substantial presence in the electronics and consumer industries.

  6. Fliway also has an established international division with a freight arm. One of New Zealand’s largest customs brokers, it is consistently ranked amongst the top customs lodgers of entries by volume4. This complements Yang Kee’s earlier strategic acquisition of Australian based company, Axima, to facilitate cross Oceania trade between Australia and New Zealand, as well as trade flows between Oceania and Yang Kee’s existing networks in South East Asia and China.

  7. “This is a significant milestone for Fliway, and reflects our long held view that there are strong growth opportunities that come from leveraging a larger geographic footprint across Oceania and Asia. Being part of the Yang Kee Group delivers on that and provides scale to support Fliway’s customers, both in New Zealand and throughout the Asia-Pacific Region,” said Mr Duncan Hawkesby, Managing Director of Fliway Group Ltd.

  8. IE Singapore Partners Yang Kee Logistics in its Global Growth Strategy

  9. Yang Kee is partnering IE Singapore closely as it embarks on an acquisition strategy to gain new networks and capabilities to become a global logistics player. IE Singapore worked with Yang Kee to deepen its foothold in these markets and enhance its end-to-end supply chain networks. This included connecting them to business development leads, and providing support in feasibility studies, due diligence, financial and legal professional services for the acquisition of both Fliway and Axima.

  10. Recognising the importance of a robust and global recruitment HR strategy to support its growth, Yang Kee is working with IE Singapore to develop an international manpower strategy to build a global team, with its Singapore headquarters setting the standards and best practices.

  11. Said Mr Law Chung Ming, Group Director for Transport & Logistics, IE Singapore, “The combined strengths of Axima and Fliway enhance Yang Kee’s global networks and supply chain capabilities. Furthermore, their logistics solutions will now serve as a resource for other Singapore companies to access the Australia and New Zealand markets. As we work with Yang Kee on its next stage of growth, talent development will be very critical. Specifically, we need to groom talent with specialised logistics skillsets for new business segments, and market ready skillsets for deep understanding of market needs.”

  12. For example, to help Yang Kee meet its global manpower needs, IE Singapore supported the company in building presence on LinkedIn, working on a digital employer strategy to engage and recruit relevant employees. Yang Kee is also one of the first few companies on board IE’s Professional Conversion Programme (PCP) - South East Asia Ready Talent5 for logistics, with two candidates taking part in the programme. They will receive on-the-job training and gain exposure to regional logistics projects, building the company’s manpower capabilities in specialised logistics.

  13. Yang Kee has also worked with SPRING Singapore to develop relevant skills and knowledge among its employees through a career development pathway. With SPRING’s support, Yang Kee also developed new business capabilities such as specialised services for the chemicals and oil & gas sectors with the launch of its Chemical Logistics Hub, enabling it to secure contracts with large global chemical clients.

  14. Financing of the Acquisition

  15. The acquisition of Fliway was financed by the Australia and New Zealand Banking Group Limited (“ANZ”) as well as United Orient Capital (“UOC”), a special situation fund sponsored by the United Overseas Bank Limited.

  16. Mr Yeo Wee Yap, Executive Director of United Orient Capital said, “Yang Kee’s experienced management team has helped the group successfully broaden its footprint across the region. We are pleased to support Yang Kee’s internationalisation plan and we look forward to working closely with the group as it embarks on the next phase of growth with its expansion into New Zealand.”

  17. ANZ is the sole mandated lead arranger, underwriter and bookrunner for Yang Kee’s acquisition of Fliway, as well as the earlier acquisition of Axima.

  18. Chief Executive Officer Singapore and Head of South East Asia, India and Middle East, ANZ, David Green said, “We are pleased to lead the financing for Yang Kee’s acquisition of Fliway, building on the success of their recent acquisition of Axima which we also supported as lead arranger. We have a strong partnership with Yang Kee and are proud to play a role in supporting their growth strategy alongside important partners like IE Singapore, drawing on our cross-border product capability, transport and logistics sector insights and network across Asia, Australia and New Zealand.”

-- End--

Media Contact

Yang Kee Logistics

Eunice Choy

Corporate Communications

DID: +65 6705 8259

Email: eunice.choy@yangkee.com


IE Singapore

Corinne Fu

Corporate Communications

DID: +65 6433 4769

Email: corinne_fu@iesingapore.gov.sg


About Yang Kee Logistics

Founded in 1990 in Singapore, Yang Kee Logistics is today, an end-to-end global supply chain logistics solutions provider with a global presence in 12 countries. With a global team of over 1050 employees, we are equipped with the in-depth expertise and experience in a wide range of industries, including the oil and gas, consumer and retail, industrial, food and beverage, healthcare, and chemical sectors.

About International Enterprise Singapore

IE Singapore is the government agency that promotes international trade and partners Singapore companies to go global.

We attract and anchor global trading companies in Singapore by promoting our unique advantages as a global trading hub. Today, Singapore is home to a complete ecosystem for the energy, agri-commodities and metals & minerals trading clusters.

Through our network of over 35 overseas centres and comprehensive assistance programmes, we partner Singapore companies to strengthen their global competitiveness.

IE Singapore will merge with SPRING Singapore to form Enterprise Singapore in Q2 2018. Enterprise Singapore will enable the growth of Singapore companies through an integrated support network to build business capabilities and access overseas markets.

Visit https://www.iesingapore.gov.sg for more information.

About Fliway Group Ltd

Fliway is one of New Zealand’s largest fully integrated logistics providers. Fliway offers seamless global supply chain solutions – from international freight to warehousing, and domestic delivery to business or the home. Fliway has a great team of over 400 people, backed by a strong network of global partners, and built off an extensive New Zealand footprint. Fliway has been operating in New Zealand for over 40 years.


[1] Yang Kee’s acquisition of Axima added S$150 million to Yang Kee’s revenue and brought with it world class capabilities in international freight forwarding in all major Australian gateways, as well as the China and US markets.

[2] Source: New Zealand’s Ministry of Foreign Affairs

[3] Fliway operates over 150 vehicles across 17 sites in New Zealand, which includes 12 branches and five warehouses. It delivers domestically about 1.6 million pieces of freight per annum and processes about 49,000 units of freight per day across 36,000 square metres of warehousing facilities.

[4] Fliway’s freight arm handles about 8,800 international shipments and performs approximately 108,000 clearances per annum.

[5] IE Singapore and Workforce Singapore (WSG) launched the PCP – South East Asia Ready Talent in early September. This is applicable for companies in logistics and wholesale trade.