China's SF Holding eyes stake in Hong Kong's US $5b Kerry Logistics
ONE of China's largest package-delivery services SF Holding is looking into a potential investment in Hong Kong's US$5b Kerry Logistics owned by Malaysian tycoon Robert Kuok, Bloomberg reported citing people with knowledge of the matter
07 February 2021 - 19:00
The Chinese courier is in talks to acquire a minority stake in Kerry Logistics Network Ltd, according to the people, who asked not to be identified because the information is private. Kerry Logistics shares have risen 38 per cent in Hong Kong trading this year, giving the company a market value of about US$5.4 billion.
Kerry Logistics is also considering selling some assets to its parent company, the people said. Mr Kuok controls the firm through his family holding company Kerry Group and its publicly-traded real estate arm Kerry Properties Ltd. Details of a potential transaction are still being discussed, and the structure of the deal could change, the people said.
Trading in Kerry Properties and Kerry Logistics was halted in Hong Kong on Friday, pending inside information announcement. SF Holding also suspended its trading in Shenzhen, pending an announcement.
Shares of SF Holding have nearly tripled over the past 12 months, helping the company surpass FedEx Corp in value and giving it a market capitalisation of about $75 billion.
The group owns courier service SF Express, which has benefitted from the rise in online shopping in China fueled by companies like Alibaba and JD.com. In 2019, SF Holding completed the acquisition of Deutsche Post DHL Group's supply chain assets in China for CNY5.5 billion (US$850 million).
There's no certainty the deliberations will lead to a transaction, the people said. Representatives for SF Holding, Kerry Group, Kerry Logistics and Kerry Properties didn't immediately respond to requests for comment.
Kerry Logistics provides warehousing, distribution and supply chain solutions to companies across Asia. Its offerings include air freight, trucking and ocean cargo services as well as customs brokerage and cross-border logistics for e-commerce companies.
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