Chinese largest private courier SF Holding is seeking to acquire a majority stake in Kerry Logistics Network Limited, via its wholly-owned subsidiary Flourish Harmony, in a HKD 17.5 billion (USD 2.3 billion) deal that will allow the company to expand internationally.
Shenzhen-headquartered SF offers HKD 18.8 for each of the 931.2 million shares, which represent 51.8% of all shares issued, according to a joint announcement to the Hong Kong Stock Exchange. The company also declared a special dividend of HKD 7.28 per share, which would pay investors, including Hong Kong tycoon Robert Kuok, HKD 26.08 in cash for each share if they accept SF’s offer.
Kerry Logistics, which suspended trading last Friday, closed at HKD 24.65 on Wednesday, up 5.12%. SF closed at RMB 117.1, up 10%, the upper limit for stock fluctuations on a daily basis.
The takeover offer is subject to antitrust approval and statutory review from the State Administration for Market Regulation in China, according to the announcement. SF’s smart locker Hive Box was fined RMB 500,000 (USD 76,463) in December for not properly reporting a takeover, in one of the first anti-trust law enforcement cases in the country.
Hong Kong-headquartered Kerry is operating in 58 countries and territories, with more than 10,000 self-owned vehicles. The company reported HKD 21.9 billion in revenue in the first half of last year, up 10% year-on-year and HKD 845 million in net profits, up 26% YoY.