BTS ad seller VGI buying 23% of Kerry Express

BTS ad seller VGI buying 23% of Kerry Express

Courier now skytrain's sole logistics partner

SET-listed VGI Global Media Plc, a provider of media space in the skytrain system, has agreed to purchase a 23% stake in Kerry Express Thailand Ltd in a bid to set up parcel collection points at BTS stations.

VGI has executed a term sheet with three companies who collectively hold 100% of Kerry Express on an investment purchase of shares in the express delivery company, VGI said in a statement filed with the Stock Exchange of Thailand.

The three companies are KLN Logistics Thailand Ltd, Gather Excellence Ltd and Siam Chao Phraya Express Ltd.

"[VGI has agreed to invest] in 23% of shares in Kerry Express Thailand by purchasing from existing shareholders and offering the company's newly issued ordinary shares to existing shareholders via a private placement," the statement said.

"The purchase price of Kerry Express shares [valued at] 5.9 billion baht is subject to further adjustment; if any, [it is] to be made after verification by the company through a due diligence review of Kerry Express Thailand's profit after tax of the financial year ended Dec 31, 2017, which shall be paid in cash."

Kerry Express is to be the only express logistics partner of VGI and BTS, whereby it will use the skytrain to carry out its express delivery services, the statement said.

Kerry Express will be able to set up shops, kiosks and counters at skytrain stations for parcel pickup and goods collection.

VGI will be granted the right to manage new advertising space, such as Kerry Express's vehicle delivery fleets, shops and points of service, along with offering product sampling through express delivery services.

"[Kerry Express's] main customers and logistics platform will boost [VGI's] offline to online media solutions business in response to the rapid growth of online transactions," the statement said. "Investment in Kerry Express will also diversify the company's business and enhance its regional growth opportunities."

VGI has integrated all media within the group, including VGI, Master Ad, Aero Media and Rabbit Card.

VGI shares closed Tuesday on the SET at 7.70 baht, up five satang, in trade worth 65 million baht.

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