Hong Kong tycoon John Lau is considering options including a sale of his logistics assets amid interest from potential buyers, according to people familiar with the matter.
(Bloomberg) — Hong Kong tycoon John Lau is considering options including a sale of his logistics assets amid interest from potential buyers, according to people familiar with the matter.
Lau held preliminary talks with global logistics companies and other potential buyers for the business including Hong Kong-based holding company Cargo Services Far East Ltd., the people said, asking not to be identified because the matter is private. The assets may fetch a valuation of more than $1 billion, the people said.
A transaction could involve a buyer for all of the assets or a piecemeal deal involving different companies, the people said. No final decisions have been made and Lau could decide against pursuing a transaction, the people said.
Lau’s logistics empire includes a majority stake in Hong Kong-listed CN Logistics International Ltd., which he is also executive chairman of. The company’s stock has slid 4.4% this year, valuing it at about $282 million.
Founded in 1989 by Lau, Cargo Services Far East’s holdings range from ocean and freight services to retail solutions technology, food, cold chain and fashion logistics, according to its website. The group primarily operates via the Cargo Services, CN Logistics, Allport Cargo Services and eCargo brands, the site shows. It operates in over 40 countries and has more than 9,000 employees. It also holds a significant minority stake in logistics firm EV Cargo.
Cargo Services and JL Enterprises Holdings Ltd., a family office investing in freight forwarding and logistics also founded by Lau, are planning to sell their stakes in EV Cargo, which is majority owned by private equity firm EmergeVest. Lau was an early backer of EmergeVest.
“I have been continually approached in the last 15 years by parties interested in the Cargo Services Group,” Lau said in an e-mailed statement responding to a Bloomberg News query. No definitive decision on the interest has been made, he said. The valuation of the business is “significantly higher than what has been speculated,” Lau added, and declined to comment further.
“The intention to sell the stake in EV Cargo is not related to my businesses but is a result of a difference in business strategy with EV Cargo entering the China market,” Lau said.
Lau, who has about 35 years of experience in the logistics sector, is passionate about the industry and has no plans to retire, he added.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.