New Century Logistics proposes 51% acquisition of Asiatic Logistics

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New Century Logistics (NASDAQ:NCEW [https://seekingalpha.com/symbol/NCEW]) has signed a Letter of Intent with Asiatic's sole shareholder, Chiu Nga Ting, to acquire [https://seekingalpha.com/pr/20125802-new-century-logistics-bvi-limited-announced-the-proposed-acquisition-of-51-percent-shares-of] 51% of Asiatic's shares.

The move aims to boost New Century's presence in Asia and improve its global logistics ecosystem.

The LOI signifies a significant milestone in the partnership, highlighting the mutual commitment to optimizing operational efficiencies and synergies.

New Century and Asiatic signed a Strategic Cooperation Framework Agreement in July 2023 to enhance transportation services and share resources. Currently, acquiring 51% of Asiatic aims to strengthen their partnership and achieve mutual benefits.

The acquisition is expected to strengthen New Century's Asian market advantages and upgrade its global logistics network.

The proposed deal offers strategic value to New Century in three main areas: it will enhance logistics in Asia, expand global networks between Asia, Europe, and the Middle East by combining operations, and improve resource sharing for better efficiency and market reach.

New Century plans to use Japan as a key hub to expand its business in Asia after completing an acquisition. The company aims to strengthen Japan's role as a "transshipment center" that links Southeast Asia, Europe, America, and the Middle East through logistics channels. Other key initiatives includes: e-commerce services, resource integration, and digital upgrades for business growth in Asia and beyond.

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