Release Date: 11 July 2006
Release ID: 515
In Stock Exchange Announcement no. 165 of 31 May 2005, it was announced that DFDS Transport had signed an agreement in which DFDS Transport had undertaken to acquire the remaining 34% of DFDS Transport (China) Co. Ltd from JHJ international corporation Co. Ltd. The transaction has now been completed as at 3rd July 2006, and DFDS Transport (China) Co. Ltd. is now a wholly-owned subsidiary of DFDS Transport and consequently the DSV Group.
Since 1998, DSV has been represented in China, first with a representative office and subsequently with a joint venture where the minority shareholding later changed into a majority shareholding and now into a wholly-owned foreign entity (WOFI) in order to control own operations in the world’s fastest growing economy.
DFDS Transport (China) Co. Ltd. has fully fulfilled the high expectations set out by the Group Management in Denmark. From the outset, the company has sought to become involved within all areas of transport and logistics when new opportunities arose. Furthermore, in line with local authorities opening for foreign investments, the company has increased its ownership share and influence.
Today, DFDS Transport (China) Co. Ltd. has 240 employees working at over 13 locations in China. Among the staff are 10 overseas expatriated employees. The company is under Danish management and has an A licence enabling the company to operate independently from partners and local sub suppliers. DFDS Transport (China) Co. Ltd. expects to record revenue of DKK 450 million in 2006 and has a budgeted EBITA of DKK 41.8 million in 2006. During the last few years, the company has recorded substantial growth rates surpassing the market development in China, and this trend is expected to continue in the years ahead.
The parties have agreed not to publish the acquisition price.
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