Following a recent resolution by the board of Kerry Express (Thailand) Plc (KEX), the company approved a capital increase by issuing up to 2.8125 billion newly issued ordinary shares with a par value of 0.50 baht per share.
These shares will be allocated to KEX’s existing shareholders in proportion to their respective shareholdings through a rights offering at 3.20 baht per share.
SF Express Group, the majority shareholder of KEX with a 62.7% stake, has notified KEX of its intention to fully subscribe to its rights offering entitlements.
According to a statement by KEX to the Stock Exchange of Thailand, SF Express Group, the largest integrated logistics service provider in China and Asia, has expressed support for the capital increase plan.
SF Express Group may oversubscribe beyond its entitlement as it deems appropriate, in accordance with relevant requirements and within the scope of applicable laws.
The funds raised from this capital increase will bolster the company’s financial stability by repaying loans, enhancing its capital structure, and restoring financial strength, thereby offering balance sheet flexibility for future financing opportunities, according to the company.
These funds will serve as working capital, fortifying liquidity, sustaining ongoing business operations, and facilitating strategic investments to maintain long-term competitiveness, stated Kerry Express.
Alex Ng, chief executive of KEX, remarked that the capital increase plan reflects investor confidence in the growth potential and enduring stability of the business.
“We anticipate this will bolster our financial resilience, fostering new opportunities for expansion while elevating our industry to the next level,” he said.
S.F. International Holding (Thailand) Co, a subsidiary indirectly owned by SF Group, is responsible for conducting the securities tender offer.
