The Siam Cement Public Company Limited (SET: SCC) announced that its board of directors approved a merger between SCG Logistics Management Co., Ltd., a subsidiary of SCC, and JWD InfoLogistics Public Company Limited (SET: JWD) by means of share swap between the shares held by SCG Cement-Building Materials Co., Ltd.and SCG Distribution Co., Ltd. in the amount not exceeding 35,031,000 shares, and the newly issued ordinary shares in JWD in the amount not exceeding 776,806,301 shares, at the price of Baht 24.02 per share, accounting for a total value not exceeding Baht 18,660 million. Following the completion of the transaction, SCG CBM and SCG Distribution will hold 42.9 percent of JWD.
After the completion of the merger transaction, JWD will change its name to SCGJWD Logistics Public Company Limited (SCGJWD). The purpose of this transaction is to develop a complete range of logistics services and become ASEAN’s leading logistics and supply chain solutions provider.
The merger will cause SCGJWD to operate in more than 8 countries and to become the largest regional integrated logistics and supply chain solutions provider in ASEAN by revenue and profit, and become a company specialized in logistics and supply chain solutions, with an increased capacity to provide services to an expanded customer base, covering both the B2B, B2B2C, and C2C, enhance the ability to compete in the logistics sector, reduce management costs, increase investment opportunities, strengthen capital structure, and improve efficiency in offering a variety of services and products to customers, the ability to efficiently support national economic development, and be in alignment with the current situation and industrial trends.
SCC stated that as SCGL and JWD’s businesses do not overlap significantly and are likely to promote one another, the merger of businesses will diversify the forms of service provision to become more varied and integrated, and combine strengths in terms of JWD’s expertise in specialized logistics and the professional work culture of SCGL, enabling SCGJWD to grow exponentially. Therefore, the merger will increase additional opportunities for future synergies, such as the opportunity to increase revenues.