Century Logistics completes stake sale
> CJ Korea Express pays RM174.79 million for 31.44% of Malaysian logistics company
PETALING JAYA: The sale of a 31.44% stake in Century Logistics Holdings Bhd to CJ Korea Express Asia Pte Ltd a was completed for RM174.79 million yesterday.
The transaction of 120.54 million shares was done at RM1.45 a share.
On Sept 8, Century Logistics’ vendors Datuk Phua Sin Mo, Datin Lee Lay Hun, Pamela Phua Jo Lyn and Chai Mee Young entered into a conditional sale and purchase agreement with CJ Korea Express Asia for the exercise.
CJ Korea Express Asia is a member company of CJ Korea Express Corp (CJKX), the largest logistics provider in Korea with a diversified business portfolio offering integrated logistics solutions to both local and global customers.
CJKX, which is listed on the Korea Exchange, has a market capitalisation of 4.5 trillion won (RM17.2 billion) and global revenues of 5.1 trillion won for the financial year ended Dec 31, 2015.
CIMB Investment Bank Bhd was the financial adviser to CJKX for this transaction.
Being the largest parcel delivery company in Korea, CJKX is expected to introduce its advanced TES (Technology, Engineering, System & Solution) and know-how to Century Logistics, thereby expanding Century Logistics’ offering into the e-commerce and parcel delivery sectors.
The integration of CJKX’s Asean network with that of Century Logistics in Malaysia will complete the first step in CJKX’s aspiration to be the regional logistics leader.
CJKX intends to leverage on the facilities and infrastructure of Century Logistics in its core regions, i.e. Klang Valley and Johor, as well as the freight forwarding activities in the main ports, thereby mutually improving the competitiveness of both CJKX and Century Logistics.
CJKX and Century Logistics will integrate their logistics and administrative activities, resulting in a larger network and more costefficient operations. It is also expected that CJKX and Century Logistics will benefit through sharing of key logistics hubs and networks, cross-selling and new business opportunities.