Top Sino-Courier Seeks 51.8% Stake of KEX’s Parent “KLN” in HK to Bolster SEA Logistics

SF Holding Co., one of the largest Chinese package-delivery services, is seeking to acquire 51.8% stake in Kerry Logistics Network Ltd. (KLN), a parent company of KLN Logistics (Thailand) Company Limited, who is a major shareholder of Kerry Express (Thailand) Public Company Limited (KEX).

The Chinese courier planned to acquire 51.8% from a Malaysian tycoon Robert Kuok’s KLN, a listed company in Hong Kong, in a HK$17.6 billion ($2.3 billion) deal at HK$18.8 per share, reported Bloomberg. Kuok holds KLN through Kerry Properties Ltd. and Kerry Group.

According to the report, KLN planned to sell some warehouse assets for HK$13.5 billion ($1.97 billion) and its Taiwan business for NT$4.5 billion ($161 million) to its parent company.

Bloomberg Intelligence (BI) stated that SF Holding will bolster its China and Southeast Asia logistics capabilities through this acquisition, although the Taiwan business and warehouse business in Hong Kong are excluded from the deal. BI expected the deal to extend SF Holding’s lead over peers such as ZTO and Yunda, fueled by further investment into freighter aircraft and even an airport.