Century Logistics completes disposal

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 were done at RM1.45 a share.
On Sept 8, Century’s 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 (SPA) with CJ Korea Express Asia for the exercise.
The purchaser, 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 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, thereby expanding further Century’s offering into the e-commerce and parcel delivery sectors.
The integration of CJKX’s Asean network, with Century’s network 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 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.
Both CJKX and Century shall integrate their logistics and administrative activities, resulting in a larger network and more cost efficient operations.
It is also expected that CJKX and Century will benefit through sharing of key logistics hubs and networks, cross-selling and new business opportunities.