Kerry Express okays capital increase plan
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Kerry Express okays capital increase plan

Firm to issue up to 2.8125 billion shares

Kerry Express delivery vehicles parked outside the company's distribution centre.
Kerry Express delivery vehicles parked outside the company's distribution centre.

Following a recent resolution by the board of Kerry Express (Thailand) Plc (KEX), the company approved an increase in its capital by issuing up to 2.8125 billion newly issued ordinary shares with a par value of 0.50 baht per share.

The allocation of these shares are to KEX's existing shareholders, proportionate to their respective shareholdings (a rights offering) at 3.20 baht per share.

SF Express Group, the majority shareholder of KEX with 62.7%, notified KEX of its intention to fully subscribe to its rights offering entitlements.

According to a statement by KEX to the Stock Exchange of Thailand, SF Express Group, the largest integrated logistics service provider in China and Asia, informed KEX of its support for the capital increase plan.

SF Express Group may 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, enhancing its capital structure and restoring financial strength by offering balance sheet flexibility for future financing opportunities, said the company.

The raised funds will serve as working capital, fortifying liquidity, sustaining ongoing business operations, and facilitating strategic investments to maintain long-term competitiveness, said Kerry Express in a statement.

Alex Ng, chief executive of KEX, said the capital increase plan reflects investor confidence in the growth potential and enduring stability of the business.

"We anticipate this will bolster our financial resilience, fostering new opportunities for expansion, while elevating our industry to the next level," he said.

S.F. International Holding (Thailand) Co, a subsidiary indirectly owned by SF Group, is responsible for conducting the securities tender offer.

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