Logistics companies S.F. Holding Co. Ltd. (6936.HK; 002352.SZ) and J&T Global Express Ltd. (1519.HK) on Thursday announced a new equity alliance that could signal the easing of a prolonged price war in China’s parcel delivery sector.
Under the new tie-up, J&T will buy about 226 million new Hong Kong-listed shares in S.F. Holding for HK$8.3 billion ($1.06 billion), or HK$36.74 per share, giving it 4.29% of S.F. Holding’s enlarged share capital. The price represents a 3.9% premium to S.F. Holding’s Wednesday closing price of HK$35.36 before the deal’s announcement.
At the same time, S.F. Holding will pay an identical HK$8.3 billion for 822 million of J&T’s Class B shares, representing a price of HK$10.10 per share, giving it 8.45% of J&T’s enlarged share capital. The price represents a 14% discount to J&T’s closing price on Wednesday.
The companies, both leaders in China’s logistics market, said they will benefit from each other’s strengths through the new alliance.
J&T shares rose 0.7% on Thursday after the announcement, but were down about 3% on Friday afternoon. The stock is up about 80% over the last 52 weeks. S.F. Holding’s shares rose 2.4% on Thursday, but were down about 0.6% on Friday afternoon. The stock is up about 5% over the last 52 weeks.
By Doug Young
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