Silk Logistics (SLH AU): ACCC's Green Light

• Given the ACCC's comprehensive list of concerns, as detailed in Silk Logistics (SLH AU): ACCC's Statement Of Issues, this approval comes as a (pleasant) surprise.

• DP World's Offer for Silk Logistics (SLH AU) remains subject to FIRB signing off and a Scheme vote. Neither of which should pose an issue.

• Timing? The IE and Scheme Booklet are all in place - from December last year. This requires a new schedule from the Courts. A possible revised timetable suggest late-August completion.

Silk is illiquid - look away now if that is not your thing.

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Conclusions First

• This development caught me out, especially given ACCC's list of concerns.

• Timing from here? As noted in Silk's announcement on the 27 June, both parties have agreed that the "End Date" for the Scheme would automatically extend to 7 August in the event that the ACCC announces (on or prior to the 10th July) that it does not propose to intervene in the Scheme.

  • Expect Silk/DP World to now tap the NSW Supreme Court seeking orders on a revised Scheme Meeting date.

  • My guess is that the earliest the Scheme Meeting can be called is around a month from here, and that a revised Scheme Booklet be dispatched pronto.

  • Say a fortnight later for implementation, so the third to fourth week of August to wrap thing up - call it end-August.

  • Silk and DP World can easily reach an agreement to extend the "end Date" beyond the 7th August.