Hong Kong-listed logistics giant SF Holding and J&T Global Express announced a cross-shareholding agreement worth HK$8.3 billion (US$1.06 billion) on Thursday, as Chinese companies accelerate overseas expansion amid growing cross-border e-commerce demand across Asia.
The deal will see SF Holding, Asia’s largest integrated logistics provider, acquire an 8.45 per cent stake in J&T for about HK$8.3 billion, while J&T will buy 4.29 per cent of SF Holding’s enlarged share capital for the same amount, according to filings with the Hong Kong stock exchange.
Upon completion, SF Holding will hold 10 per cent of J&T’s total issued share capital.
At the close of trading on Thursday, SF Holding rose 2.38 per cent to HK$36.20 while J&T Express climbed 0.77 per cent to HK$11.83.
Under the share subscription agreement, SF Holding will subscribe 821.66 million newly issued J&T Class B shares at HK$10.10 per share. The subscription price represents a 13.97 per cent discount to J&T’s closing price of HK$11.74 on January 14, and equals the 90-day volume-weighted average price.
J&T will subscribe to 225.88 million newly issued SF shares at HK$36.74 per share, representing a 3.9 per cent premium to SF’s closing price of HK$35.36 on the same date. The SF subscription price also matches the 90-day volume-weighted average price.
