Capital Calls: China’s delivery deal

KLN Logistics

10/02/2021 07:38

(The author is a Reuters Breakingviews columnist. The opinions
expressed are their own.)
    HONG KONG, Feb 10 (Reuters Breakingviews) - Concise insights
on global finance in the Covid-19 era.
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BOXED GOODS. SF Holding’s  002352.SZ  $2 billion delivery deal
packs a big punch. The $75 billion Shenzhen-listed company is
buying https://www.kln.com/en/press/press-release/2021/s-f-holding-and-kerry-logistics-network-announce-strategic-investment-and-cooperation
 a 51.8% stake in Malaysian tycoon Robert Kuok’s Kerry Logistics
Network. Minority shareholders get a decent premium, while the
buyer adds a fast-growing Southeast Asia business to its
ambitious international expansion plans.
    As part of the deal, Kerry will offload to its parent a
Taiwan unit and some warehouses. Proceeds from the latter will
fund a special dividend. In total, those selling will receive
HK$26.08 per share, 60% above the stock’s average price in
January. 
    The tie-up will create  urn:newsml:reuters.com:*:nL1N2KG065 Asia’s largest logistics
operator. For SF, the bigger appeal may be Kerry’s Hong Kong
listing, which would allow it to tap foreign investors. New
sources of funds will be welcome as the company prepares to open
a long-awaited cargo airport in China next year. This deal could
make for a less turbulent ride. (By Robyn Mak)

    On Twitter http://twitter.com/breakingviews
    
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