|Strengthens Leading Position in the ASEAN Region|
HONG KONG, May 17, 2018 - (Media OutReach) - Kerry Logistics Network Limited ("Kerry Logistics" or the "Company", together with its subsidiaries, the "Group", Stock code: 0636.HK) has today announced that Kerry Express (Thailand) Limited ("Kerry Express"), the subsidiary of the Company and the leading parcel delivery company in Thailand, has entered into certain agreements with VGI Global Media Public Company Limited ("VGI"), the subsidiary of Bangkok Mass Transit System Public Company Limited ("BTS PLC") and Thailand's top Offline-to-Online ("O2O") solutions provider. Pursuant to the agreement, Kerry Logistics, together with existing shareholders of Kerry Express, have agreed to a transaction of disposal of 23% of the total issued share capital of Kerry Express to VGI, for a consideration of THB 5.9 billion (approximately HK$1,475 million). The signing ceremony was held in Thailand today.
With this strategic partnership, Kerry Express will expand its service portfolio tapping the fast-growing O2O demand through the venture with VGI. Kerry Express will become the only express logistics partner of VGI and Bangkok Mass Transit System ("BTS Skytrain"). The collaboration will enable Kerry Express to use BTS Skytrain to extend its express delivery services and to expand its customer base by adding more extensive delivery routes. Upon the signing of agreements, Kerry Express will also have the first right of refusal to set up service outlets in all BTS Skytrain stations for services such as parcel collection and drop-off. Through the additional infrastructure provided by the BTS group of companies, Kerry Express will further improve its operating efficiency thereby enhancing its service level and improving its growth performance across the country.
VGI for its part will solidify its establishment within the O2O ecosystem by further penetrating the digital online marketing sector in Thailand. The investment also enables VGI to have physical connectivity for the consumer, with a particular focus on the rapidly-expanding e-commerce business. VGI will also strengthen its capabilities in tailor-made advertising solutions.
William Ma, Group Managing Director of Kerry Logistics, said, "This joint venture navigates new growth opportunities and connectivity with an ever-evolving e-Commerce ecosystem. As Asia's premier logistics service provider, our expansion in Thailand will further strengthen the Group's market position in the ASEAN countries, and add value to our express business in Thailand. We are confident in achieving good results and will continue to explore opportunities in other countries for our sustained development in the global market."
About Kerry Logistics Network Limited (Stock Code 0636.HK)
Kerry Logistics is an Asia-based, global 3PL with the strongest network in Asia. Its core competency is providing highly customised solutions to multinational corporations and international brands to enhance their supply chain efficiency, reduce overall costs and improve response time to market. It currently has more than 1,000 service points in 51 countries and territories, and is managing 52 million sq ft of land and logistics facilities worldwide, providing customers with high reliability and flexibility to support their expansion and long-term growth. Kerry Logistics Network Limited is listed on the Main Board of the Hong Kong Stock Exchange and is a selected Member of the Hang Seng Corporate Sustainability Index Series 2017-2018.
About Kerry Express (Thailand) Limited
Established in 2006, Kerry Express is Thailand's leading express delivery parcel company, offering the country's best parcel delivery services. Covering by its 600 distribution centres and 2,500 service locations country-wide with multi-service channels, Kerry Express takes the lead in convenient, reliable and speedy delivery solutions to its customers, ranging from individuals, e-retailers and individual sellers on social media and ensures their parcels are successfully delivered on time. Kerry Express pioneered mobile payment-on-delivery in the country including the acceptance of cash or Rabbit LinePay upon the deliveries to households. Kerry Express is a member of Kerry Logistics Network Limited's global network.
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May 17, 2018 22:00 HKT/SGT
Topic: Press release summary
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