Kerry Logistics Network Limited announced that Kerry Express (Thailand) Limited, the subsidiary of the Company and the leading parcel delivery company in Thailand, has entered into certain agreements with VGI Global Media Public Company Limited (VGI), the subsidiary of Bangkok Mass Transit System Public Company Limited (BTS PLC) and Thailand’s top Offline-to-Online (O2O) solutions provider.
Pursuant to the agreement, Kerry Logistics, together with existing shareholders of Kerry Express, have agreed to a transaction of disposal of 23% of the total issued share capital of Kerry Express to VGI, for a consideration of THB 5.9 billion (approximately HK$1,475 million). The signing ceremony was held in Thailand today.
With this strategic partnership, Kerry Express will expand its service portfolio tapping the fast-growing O2O demand through the venture with VGI. Kerry Express will become the only express logistics partner of VGI and Bangkok Mass Transit System (“BTS Skytrain”). The collaboration will enable Kerry Express to use BTS Skytrain to extend its express delivery services and to expand its customer base by adding more extensive delivery routes. Upon the signing of agreements, Kerry Express will also have the first right of refusal to set up service outlets in all BTS Skytrain stations for services such as parcel collection and drop-off. Through the additional infrastructure provided by the BTS group of companies, Kerry Express will further improve its operating efficiency thereby enhancing its service level and improving its growth performance across the country.
VGI for its part will solidify its establishment within the O2O ecosystem by further penetrating the digital online marketing sector in Thailand. The investment also enables VGI to have physical connectivity for the consumer, with a particular focus on the rapidly-expanding e-commerce business. VGI will also strengthen its capabilities in tailor-made advertising solutions.