OKH Global to form JV with Pan Asia Logistics

It'll be a 60:40 venture.

In a release, OKH Global Ltd. announced that the Company has entered into a non-binding memorandum of understanding with Pan Asia Logistics Singapore Pte. Ltd. in relation to a proposed joint venture.

Based on the information available to the Company, PAL provides fully integrated logistics services and supply chain solutions worldwide to customers including multinational companies and is one of the fastest growing logistics providers in Asia Pacific. 

Pursuant to the MOU, the Company and PAL have agreed to establish a joint venture company in Singapore to be named as “Pan Asia Logistics Investment Holdings Pte. Ltd.” for the purposes of carrying out the business of developing, owning and managing modern logistic buildings.

The Company and PAL will have shareholding interests of 40% and 60% respectively in the JV Company. The initial paid up capital of the JV Company will be contributed by each of the parties in proportion to their respective shareholdings in the JV Company.

The Company intends to fund its investment in the JV Company using its internal cash resources and/or the issue of new equity and/or debt instruments.

It is intended that upon the formation of the JV Company, the JV Company shall acquire Pan Asia Logistics Investment Pte. Ltd., a wholly-owned subsidiary of PAL which owns three properties located in Singapore, Malaysia and Korea.