Temasek-led consortium makes offer to delist China’s ANE in Hong Kong

The consortium is working with advisers on the take-private proposal, but the negotiations have been challenging

[SINGAPORE/HONG KONG] ANE (Cayman) said on Friday (Oct 17) it received a conditional take-private offer from a consortium comprising its largest shareholder Singapore’s Temasek Holdings and Centurium Capital, which could lead to its delisting from the Hong Kong Stock Exchange.

The Chinese transportation and delivery services company said in a stock exchange filing that the indicative proposal was submitted on Sep 17 and involves Centurium Capital, which already owns about 24.32 per cent of ANE’s shares, and entities linked to Temasek and True Light Capital.

The consortium’s indicative offer amount has not been disclosed.

Responding to a Reuters request, Temasek confirmed it is a member of the consortium alongside Centurium Capital and True Light.

However, Temasek did not comment further on its role within the consortium.

ANE shares dropped as much as 26 per cent to HK$7.50 after trading resumed in the afternoon. It was last down 9.9 per cent at HK$9.14.

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Temasek and True Light currently hold no shares in ANE, according to the filing.

ANE added talks remain early and may not lead to a formal offer.

The consortium is working with advisers on the take-private proposal, but the negotiations have been challenging, said people with knowledge of the potential transaction, who declined to be named as the information was confidential.

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“While the Board is still considering the Indicative Proposal, the outcome of the negotiations on the Indicative Proposal remains uncertain, and there is no certainty that the Indicative Proposal will ultimately lead to an Offer (as defined in the Takeovers Code) being made in relation to the shares,” ANE said.

Before trading resumed, ANE held a market valuation of US$1.53 billion. Shares had climbed almost 27 per cent year-to-date prior to the sharp decline on Friday, according to data compiled by LSEG.

Besides Centurium Capital, its top shareholders include CDF Ane Ltd, Great Vision and Qin Xinghua.

ANE operates one of China’s largest less-than-truckload logistics networks, serving e-commerce and industrial clients. It listed in Hong Kong in 2021 and runs thousands of line-haul trucks and trailers across the country. REUTERS