Frontier Services Group Limited Completes US$14 Million Acquisition of Phoenix Aviation Limited

HONG KONG, CHINA--(Marketwired - Jul 29, 2014) - Frontier Services Group Limited ("Frontier"), previously known as DVN (Holdings) Limited (HKSE: 00500) today announced that its wholly owned subsidiary, Frontier Services Limited, has completed its acquisition of Kenya-based Phoenix Aviation Limited ("Phoenix"), for a total consideration of US$14 million.

Through this major acquisition and strategic investment, Phoenix has immediately ramped up Frontier's capabilities and capacity to provide its clients with much-needed support for pan-African secure logistics and transportation services.

Established in 1994, Phoenix is headquartered at Wilson Airport in Nairobi, Kenya, and operates throughout Africa from its strong regional hub. The company's principal business activities include (i) regional cargo and passenger movements, (ii) repair and maintenance of its own and third-party aircraft throughout East Africa, (iii) search and rescue operations, (iv) the provision of worldwide air ambulance services, (v) transport of government and prominent private sector individuals. Phoenix is fully licensed and authorized to carry out these activities and has done so successfully over two decades.

Mr. Gregg Smith, Chief Executive Officer of Frontier said: "We are delighted with Phoenix becoming a member of our group of companies -- our response to increasing client demand for best-of-class aviation services will also mean continued fleet and operational growth for Phoenix. In addition, this acquisition significantly builds-out Frontier's capability and role as a logistics, transportation, and risk management services provider with continent-wide reach."

With rapid economic growth and the continuing rush of foreign investments, most notably Chinese investments, into the African continent, the demand for logistics services such as aviation is poised for exponential growth. Africa, the second largest continent in the world, is expected to attract as much as US$1 trillion of infrastructure investments over the next 10 years.

GDP growth last year for the African continent was about 4.8 per cent, and 4.5 per cent for Kenya. But challenging supply chain issues, such as a difficult aviation environment, and lack of road or rail access, not only cause delays but also raise costs and safety concerns.

As an example, the boom in the oil and gas industry over recent years, together with a sharp spike in infrastructure investments has created unprecedented and urgent demand for charter air services by helicopters and air ambulance services -- beyond just airfreight services.

Mr. Smith said: "Frontier's broad customer base includes local and multinational companies from anywhere in the world, as well as organizations such as the United Nations, and NGOs. With this acquisition, we are also clearly signifying our long-term commitment to our customers and to Africa."

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About Frontier Services Group
Frontier Services Group (HKSE: 00500) is a logistics, aviation, and risk management company looking to tap the demand for logistics and transport across the African continent.