SF Express Group*, the largest integrated logistics service provider in China and Asia and the major shareholder of KEX, has informed its support for the capital increase plan. The company shows its intent to subscribe its proportional allocation. This move reinforces confidence and aims to strengthen financial stability. The plan is to use the funds raised from the capital increase to repay loans, enhance liquidity as working capital, and invest in boosting long-term competitiveness.

Pursuant to the resolution of the Board of Kerry Express (Thailand) Public Company Limited (“the Company” or KEX) held on June 13, 2024, which approved the increase of KEX’s capital by issuing up to 2,812,500,000 newly issued ordinary shares with a par value of THB 0.50 per share and the allocation of these shares to KEX’s existing shareholders proportionate to their respective shareholdings (Rights Offering) at THB 3.20 per share, SF Express Group*, the major shareholder of KEX holding approximately 62.7% of KEX’s shares, has notified KEX of its intention to fully subscribe to its rights offering entitlements. SF Express Group may additionally oversubscribe beyond its entitlement as it deems appropriate, in accordance with the relevant requirements and within the scope of the applicable laws.

The funds raised from this capital increase will bolster the Company’s financial stability by repaying loans, thereby enhancing its capital structure and restoring financial strength with balance sheet flexibility for future financing opportunities. Moreover, this will serve as working capital, fortifying liquidity, sustaining ongoing business operations, and facilitating strategic investments to maintain long-term competitiveness.

“The capital increase plan reflects investors’ confidence in the growth potential and enduring stability of our business. We anticipate that it will bolster our financial resilience, fostering new opportunities for business expansion. Most importantly, it will elevate our industry to the next level, ensuring definite growth.” stated Mr. Alex Ng, Chief Executive Officer of Kerry Express (Thailand) Public Company Limited.

The details of the capital increase via Rights Offering can be found in www.set.or.th.

*S.F. International Holding (Thailand) Co., Ltd. (“SFTH” or the “Offeror”) is a subsidiary indirectly owned by SF Group, responsible for conducting the securities tender offer.