FREIGHT Links Express Holdings announced yesterday that it has commenced legal action against a private real estate investment trust, AMP Capital Business Space Reit, for not going through with the proposed purchase of an investment property at 30/32 Tuas Avenue 8.
The property is owned by Freight Links’ subsidiary Freight Links Fabpark (FLF). Freight Links said yesterday that the put and call option agreement for the proposed transaction was made in December 2007 between FLF and DB International Trust (Singapore), acting as the trustee of AMP.
‘The company wishes to announce that it has received a notice from the purchaser to rescind the agreement. The company rejects the steps taken by the purchaser and has commenced legal action in the High Court of Singapore to pursue its legal remedies in this matter,’ Freight Links said, adding: ‘The company will update shareholders on the developments of this matter.’
When Freight Links announced the proposed transaction last year, it said the sale price was $20.8 million, against book value of about $13 million.
Separately, Freight Links said that the acquisition of a 60 per cent stake in Hong Kong-based Citic Logistics (International) Company through its wholly owned subsidiary, Freight Links Capital has yet to take place, pending registration of the transfer of equity interest and changes to the operating licence.
If the transfer of share equity is not completed, Freight Links has the right to rescind the agreement, it said.
This comes shortly after Freight Links announced in early December that its Australian subsidiary had decided not to go through with the acquisition of DB2 Realty due to the ‘weak property market and tightening of credit facilities by the banks’.
Freight Links yesterday announced a 25.3 per cent year-on-year increase in net profit to $1.17 million for the second quarter ended Oct 31, 2008, while revenue inched 2.7 per cent up to $36.93 million.
Earnings per share for the quarter rose from 0.049 cents in the previous corresponding quarter to 0.055 cents in Q209.
Revenue from freight forwarding as well as other logistics fell by 4 per cent and 21.1 per cent respectively, as a result of the global economic slowdown.
However, its warehousing and logistics business registered a growth of 17.5 per cent while chemical storage and logistics was up by 20 per cent.
Foreign exchange gains on a stronger yuan contributed to a 6.5 per cent increase in other income to $1.2 million.
Half-year profit came in 24.5 per cent higher at $3.7 million. Revenue rose 7.9 per cent to $74.69 million.
Commenting on the outlook for the next 12 months, the group said that freight and warehouse rates are likely to soften and occupancy rates are expected to decline.
Source : Business Times - 12 Dec 2008
No comments:
Post a Comment