Flourish Harmony makes offer for KLN

Flourish Harmony makes offer for KLN

Company aims to acquire 51.8% stake

A line of Kerry Express delivery vehicles parked outside one the company's logistics centres.
A line of Kerry Express delivery vehicles parked outside one the company's logistics centres.

A subsidiary of SF Holding, an integrated logistics service provider listed on the Shenzhen Stock Exchange, has offered to buy 51.8% of the shares in Hong Kong-listed Kerry Logistics Network (KLN), the parent firm of KLN Logistics Thailand, the biggest shareholder of SET-listed Kerry Express (KEX) Thailand.

The subsidiary making the partial offer is Flourish Harmony Holdings.

A Kerry statement said the deal would foster synergy, mutual benefits and value creation for the two groups.

Kerry indicated SF and KLN believe the cooperation will combine the core competencies of the two groups across multiple verticals to create the leading Asia-based global logistics platform.

KLN will be positioned as SF's primary vehicle for international expansion, said the statement.

"Upon completion of the partial offer, a majority of KEX's shares will remain Thai-owned, however, management teams, corporate strategies and business operations will remain unchanged," the statement read.

KLN Logistics Thailand holds a 52.14% stake in Kerry.

Kerry chief executive Alex Ng said SF is a market leader in express deliveries in China.

SF is an integrated logistics, international freight forwarding and supply chain solutions company with a global network of 60 countries and territories and matches well with Kerry in terms of business and corporate culture, he said.

"KEX and SF share a lot of values, including the emphasis on great services. This partnership will give KEX access to SF's technology, experiences and best practices," said Mr Ng.

He said with support provided by SF, Kerry will attain a strong position in express delivery services in Thailand and across border e-commerce, which would be a boon for Thai online sellers who want to broaden their reach to China.

"KEX will continue to grow its express platform to lead all express segments across Thailand," said Mr Ng.

SF has a strong foothold in express courier services, namely SF Express in China.

It also operates e-commerce parcel, freight, cold chain, international express, intra-city delivery and supply chain management in the country.

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