PETALING JAYA: GD Express Carrier Bhd (GDEx) is acquiring a 50% stake in Vietnam’s Noi Bai Express and Trading Joint Stock Company (Netco) for RM13.85 million.
Netco is principally involved in provision of courier and logistics services in Vietnam.
In a Bursa Malaysia filing, GDEx said it has entered into a share sale and purchase agreement with Nguyen Duc The, Trieu Lan Huong and Nguyen Duc Hau for the acquisition.
GDEx has also signed a shareholder’s agreement with 3 Comma Capital Co Ltd, Trieu, Nguyen Xuan Hiep,Tran Thi Thuy Hang, Nguyen Thanh Trung and Duc The to regulate their relationships as shareholders of Netco.
“The proposed acquisition is in line with the group’s regional ambition in building a sustainable Southeast Asia delivery network to serve the community better. The expansion into Vietnam is the continuation of such effort after Indonesia,” it said it its filing.
GDEx said the purchase price was arrived at a willing buyer-willing seller basis after taking into consideration the growth potential of Netco and its extensive delivery network in Vietnam covering all 63 provinces.
Netco currently has four hubs, 45 branches & lodge-in centres and 47 points of delivery.
The proposed acquisition will be financed with internally generated funds, and the agreements are expected to be completed by January 2020.
The acquisition comes after GDEx announced earlier this month that it would be kicking off its regional expansion plan in Indonesia.
To recap, GDEx subscribed to 44.56% of Indonesia’s Development Board-listed PT SAP Express Tbk’s (SAP Express) initial public offering for RM25.8 million.
“We believe Indonesia offers a vast growth opportunity for the courier business, supported by the growth of e-commerce as well as conventional business.
“The continuation of the company’s partnership with SAP Express will enable the company to provide business advice and support, as well as knowledge transfer between the two companies,” it said in an filing with the exchange then.
SAP Express, which is headquartered in Jakarta, mainly provides services in the express delivery segment, as well as transport, distribution and warehousing.
This could also prove to be a rerating catalyst for GDEx by research analysts.
“Rerating catalysts for GDEx would be entry into other Asean countries such as Vietnam and Cambodia, a stronger retail delivery network and services, and the Digital Free Trade Zone development. e-commerce will likely drive demand growth for air cargo and land logistics especially last-mile delivery services,” said MIDF Research in a recent note.
