Kerry Logistics Network Invests THB3.4B to Propel Kerry Express Thailand's
30 Mar 2023
Kerry Logistics Network Invests THB3.4B to Propel Kerry Express Thailand’s Transformative Expansion and Solidify Its Market Leadership
Bangkok (29 March 2023) — Hong Kong-listed company Kerry Logistics Network Limited (KLN) has announced its proposal to issue a convertible bond in the aggregate principal amount of up to HKD780,000,000 (or equivalent to THB3,438,396,000) to the indirect wholly-owned subsidiary of SF Holding Company Limited.
The objective of this issuance is to expand KLN’s international express delivery business in Southeast Asia, particularly to support Kerry Express (Thailand) Public Company Limited (“KEX”). KLN remains committed to its strategy of expanding its international express delivery business and supporting KEX’s business in Thailand. The proposed issuance is one of the many steps taken by KLN to achieve its strategic objectives of reengineering and restructuring KEX’s systems and infrastructure.
With SF Holding Company Limited’s wide range of industrial know-how and technological experience in express delivery, backed by KLN’s global presence and broad range of supply chain solutions, infrastructure investment, and logistics across 59 countries and territories, KEX believes that this unified support from shareholders will help KEX break through the transformative year, drive operational efficiency, and sustain its market leadership position.
With this financial support, KEX will speed up its capital investments in machineries, equipment, and systems that help automate work processes in many areas. Additionally, KLN intends to utilise the net proceeds from the proposed issue towards replenishing general working capital and repaying existing debt.
This proposal affirms the solid support from KLN’s major shareholder SF Holding Company Limited, a leading express delivery corporation in China, to benefit KEX’s business in Thailand. KLN holds a 100% stake in KLN Logistics (Thailand) Limited, which is a major shareholder of KEX.
The proposed issuance will be a positive sign for KEX, indicating both operational and financial support from its major shareholders. It is important to note that the proposed issuance is still subject to certain pre-conditions and may or may not proceed. According to HK listing rules, the proposed issuance will take a few months to complete. The final scheme to support KEX has not yet been finalised and agreed upon by its shareholders.