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Silk Logistics Expects Higher Earn-Out Payment for Secon Acquisition

Story Highlights
  • Silk Logistics expects a higher earn-out payment for Secon due to strong performance.
  • The increased payment will not impact Silk’s FY25 earnings, but capital mix will be reassessed.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.

Silk Logistics Holdings Ltd. ( (AU:SLH) ) just unveiled an announcement.

Silk Logistics Holdings Limited announced an update regarding the earn-out payment for its subsidiary, Secon Freight Logistics Pty Ltd. Due to Secon’s strong performance, the final earn-out payment is expected to be significantly higher than initially estimated, ranging between $20 million and $25 million. This increase is attributed to a surge in uncontracted volumes in early 2025. The company will reassess its capital mix to accommodate this payment, which will not affect its underlying earnings for FY25.

More about Silk Logistics Holdings Ltd.

Silk Logistics Holdings Limited operates in the logistics industry, providing freight and logistics services. The company focuses on acquiring and integrating logistics businesses to enhance its market position and service offerings.

YTD Price Performance: -31.72%

Average Trading Volume: 238,779

Technical Sentiment Signal: Strong Buy

Current Market Cap: A$116.4M

See more insights into SLH stock on TipRanks’ Stock Analysis page.

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