Summit Alliance Port shares soar as Hellmann Worldwide acquires 40% stake in freight business
Shares of Summit Alliance Port surged after German logistics giant Hellmann Worldwide announced plans to acquire a 40% stake in Summit Alliance's freight forwarding and shipping agency business.
The strategic partnership is set to enhance Summit Alliance's global reach and operational capabilities, aligning with Hellmann's goal of expanding its footprint in South Asia, according to its price-sensitive statement filed on the Dhaka Stock Exchange (DSE).
Following the announcement, Summit Alliance Port shares jumped 9.90% to close at Tk22.20 today (20 January) at the Dhaka Stock Exchange.
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Summit Alliance operates its freight forwarding and shipping agency business through its subsidiary, Container Transportation Services Limited, which also serves as the local agent for Hellmann Worldwide Logistics International.
Recognizing the strong business potential in the sector, Hellmann Worldwide expressed interest in establishing a direct presence in Bangladesh. To this end, the company signed an agreement with Summit Alliance Port on 19 January to purchase 3.33 lakh shares of Container Transportation Services at a face value of Tk10 each, with an additional premium of Tk56.50 per share. The transaction remains subject to shareholder and regulatory approvals.
Upon completion of the agreement, Hellmann Worldwide will hold a 40% stake in Container Transportation Services, with Summit Alliance retaining the remaining 60%.
Market analysts view the deal as a major milestone for both companies, expected to foster innovation and improve efficiency in logistics services across the region.
According to Hellmann Worldwide's website, the company was founded in 1871, operates in 57 countries, and generates annual revenue of €3.5 billion.
