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<Research>CLSA Expects J&T EXPRESS/ SF HOLDING Strategic Cross-shareholdings to Enhance Overseas Biz Development
Recommend 5 Positive 9 Negative 3 |
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J&T EXPRESS-W (01519.HK) and SF HOLDING (06936.HK) announced a strategic equity cooperation, according to CLSA's research report. Both parties will issue new shares to each other, involving $8.3 billion. Of which, J&T EXPRESS-W will issue approx. 822 million Class B shares to SF HOLDING at a nearly 14% discount, while SF HOLDING will issue additional 226 million H-shares to J&T EXPRESS-W at a premium of about 3.9%. Upon completion of the transaction, SF HOLDING will hold a 10% stake in J&T EXPRESS-W, while J&T EXPRESS-W will hold a 4.29% stake in SF HOLDING. This cooperation will dilute the interests of existing shareholders of both parties, but it represents an important step in business development for both companies, CLSA added. It is expected to drive the development of overseas business, a key growth engine, and enhance both parties' logistics capabilities in overseas markets. The broker currently rated J&T EXPRESS-W/ SF HOLDING at Outperform, with target prices of $11.9/ $47.4, respectively. AASTOCKS Financial News Website: www.aastocks.com |
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