Chinese express delivery services companies SF Holding (6936) and J&T Global Express (1519) announced on Thursday that they have entered a strategic investment through a cross-shareholding deal worth HK$8.3 billion, involving the mutual issuance of new shares.
J&T Global Express will issue 821 million class B shares, or 8.45 percent of the total shares, at the price of HK$10.10, representing 14 percent lower than its closed price on Wednesday.
SF will issue 225 million H shares priced at HK$36.74 per share - nearly 4 percent higher compared with its closed price on the last trading day.
After the transaction completes, SF will hold 10 percent of J&T Global Express and become its second-largest shareholder. J&T Global Express will own 4.29 percent of SF's stocks.
J&T Global Express said the mutual equity investment will establish a strong foundation of trust that enables in-depth cooperation between SF Express and the firm, expanding its service and network coverage to the benefit of the customers.
SF believed that entering into strategic investments with partners would help the firm broaden its international network coverage and enhance end-to-end operational efficiency in a more timely manner.
