SF Overseas, a subsidiary of China’s largest courier company SF Express, has formed a joint venture with Affluent Woods to provide logistic solutions in Vietnam, according to an announcement the latter’s parent company filed with the Stock Exchange of Hong Kong on Monday.
“With the Company’s Circle K retail business being the market leading convenience store in Vietnam, the Company has witnessed dynamic growth in the overall retail and e-Commerce sectors,” said Golden Resources Development International Limited in the filing. “By capitalizing on these expanding sectors and bolstering the Company’s Circle K business through providing first-rate logistics and supply chain solutions, the Board believes the joint venture in Vietnam to embody tremendous growth value.”
SF Overseas holds a 39% stake in the joint venture, which is called GS Express Holdings and was incorporated in Singapore on January 28. The remaining share is maintained by Affluent Woods.
The two companies need to contribute a total of about SGD 7 million (USD 5.2 million) in the first year to GS Express, with SF Overseas pouring in SGD 2.7 million (USD 2 million).
In addition, GS Express will form a wholly owned subsidiary in Vietnam to absorb the current businesses of SF Overseas and Affluent Woods in the country.
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