SF Holding Takes 8.5% Stake in J&T in $1.1B Stock Deal

SF Holding Secures 8.45% of J&T Global in Strategic Share Swap

Chinese logistics giant S.F. Holding Co Ltd announced a deal to acquire an 8.45% stake in Southeast Asian logistics firm J&T Global Express Ltd. The transaction is structured as a share-swap valued at approximately HK$8.2 billion, which is equivalent to $1.05 billion.

This move solidifies the partnership between two major players in the Asian logistics market.

Deal Structure and Financials

Under the agreement, S.F. Holding will subscribe for approximately 821.7 million new shares in J&T Global at an issue price of HK$10.10 per share. In exchange, J&T Global will receive 225.9 million of S.F. Holding's Hong Kong-listed shares, issued at a price of HK$36.74 per share.

Upon completion, J&T Global will hold a 4.29% stake in S.F. Holding, creating a significant cross-ownership structure between the two companies.

Market Impact and Strategic Rationale

This deal underscores the ongoing collaboration between S.F. Holding, China's largest integrated logistics provider, and J&T Global, which has a strong foothold in Southeast Asia and China. The partnership aims to leverage their respective network strengths to enhance service capabilities and market presence across Asia.

This is not the first major transaction between them; in 2023, J&T Global acquired a unit of S.F. Holding in exchange for a stake, signaling a deepening strategic alliance.

Conclusion

The share-swap strengthens the strategic alliance between S.F. Holding and J&T Global, positioning them for enhanced competition and growth in the rapidly expanding Asian e-commerce and logistics sectors. Market observers will be closely monitoring how this integrated partnership translates into operational synergies and market share gains.

FAQ

Q: What is the total value of the share-swap deal?

A: The deal is valued at approximately HK$8.2 billion or $1.05 billion.

Q: What are the resulting ownership stakes?

A: S.F. Holding will own an 8.45% stake in J&T Global, and J&T Global will own a 4.29% stake in S.F. Holding.

Q: Why is this deal significant?

A: It strengthens the strategic alliance between two dominant logistics providers in China and Southeast Asia, aiming for greater market integration.

Source: Investing.com