The Chinese logistics "leader" SF Holding plans to further expand business in Thailand, accelerating the pace of internationalization.
Recently, Kerry Express (Thailand) Co., Ltd. issued a notice to the Thai Stock Exchange that SF International Holding (Thailand) Co., Ltd. (SFTH) has made a tender offer to acquire 73.18% of the company's outstanding shares, with a total value of approximately 7.01 billion Thai baht (approximately 1.416 billion RMB). In addition, Flourish Harmony Holdings Co., a wholly-owned subsidiary of SF Express, holds 26.82% of the sold shares. If this acquisition is completed, it will mean that SF Holding acquires 100% of the shares of Kerry Express (Thailand) and becomes its full owner and operator.
Kerry Express is in a leading position in Thailand's logistics industry. It operates 31,000 service points in Thailand, covering the entire country. The company is meanwhile an internationally well-known third-party logistics service provider reaching to 58 countries and regions worldwide, paritularly renowned in Southeast Asia where it has accumulated decades of operating experience in Thailand, Vietnam, Malaysia, and Cambodia.
For SF, Kerry Logistics marks an important pivot for its overseas business exploration. In September 2021, SF Holding completed the acquisition of 51.5% equity in Kerry Logistics, addressing the problem of a lack of local network in Southeast Asia. Subsequently, the financial statement of Kerry was merged into that of SF, leading to rapid growth in supply chain and international business. That year, the company's revenue exceeded the 200 billion yuan mark. When SF Holding acquired Kerry Logistics, Wang Wei once said, "This transaction should not be seen simply as SF acquiring Kerry Logistics, but as a deep cooperation and capital cooperation between the two parties." In his view, the transaction between the two sides was more of equity cooperation for business development.
SF Holding has stated that the complementary advantages brought by Kerry Logistics will enlarge its global network layout. Kerry's business abroad, especially in Southeast Asia, relies on its existing advantages in international freight, comprehensive logistics strength, and overseas resources, allowing SF to quickly familiarize itself with the international market. Furthermore, considering the diverse policies, regulations, customs, and geographical characteristics of various countries in the Southeast Asian market, for SF, acquiring Kerry Thailand is expected to expedite the acquisition progress in other regions. From a strategic perspective, this "one step, one footprint" approach is truly reliable.
Developing overseas business has become an inevitable step for SF. While being the logistics giant in the Chinese market, it is also making great strides towards the goal of becoming an international logistics magnate.