KUEHNE & NAGEL, SEMBCORP LOGISTICS FORM ALLIANCE

KUEHNE & NAGEL, SEMBCORP LOGISTICS FORM ALLIANCE

   Kuehne & Nagel and SembCorp Logistics of Singapore said Monday they have formed an alliance which includes mutual ownership in the two logistics companies.

   The alliance combined Kuehne & Nagel's worldwide ocean and air freight forwarding and European/U.S. supply chain management with SembCorp Logistics' strength in the Asian Pacific market.

   “Our customers shall benefit from the outstanding supply chain activities of SembCorp Logistics in Singapore, China, India and other Asian Pacific markets,” said Klaus Herms, chief executive officer of Swiss-based Kuehne & Nagel International AG. “These markets grow by more than 20 percent per annum and getting more direct access to them is an important strategic objective for us.”

   Kuehne & Nagel will acquire up to 20 percent of the shares of SembCorp Logistics and SembCorp Logistics will acquire a 20-percent stake in Kuehne & Nagel International AG.

   Initially, SembCorp Logistics will acquire 400,000 newly issues shares on Kuehne & Nagel International AG for CHF 1.275 per share and 80,000 existing shares in Kuehne & Nagel International AG. Kuehne & Nagel will acquire 10.7 million newly issues shares of SembCorp Logistics, representing 5 percent of SembCorp's share capital. Kuehne & Nagel then has an option to acquire an additional 15 percent of SembCorp's shares.

   SembCorp Logistics provides supply chain management services and offshore logistics through more than 3,000 employees and 8.6 million square feet of warehousing. Kuehne & Nagel has more than 500 offices in 85 countries.