Leo Global Logistics Public Company Limited (SET: LEO) filed the notification to the Stock Exchange of Thailand (SET) on the matter of purchasing additional shares in an associated company and the investment in a new joint venture company in Cambodia.
LEO’s Executive Committee approved the purchase of 10% additional shares in an associated company namely, Aramex (Thailand) Co.,Ltd. (LEO currently holds 26%) from Transpeed Asia Co., Ltd. (Transpeed Asia). Aramex is located at Pattanakarn Road, Prawet District, Bangkok, and operates as a provider of international courier and express services, with registered capital equals to paid up capital of THB 39 million and the par value of THB 100 per share.
The transaction will be complete within December 2023 as Transpeed Asia will sell 39,000 Ordinary shares, equivalent to 10% of registered capital with a selling price of THB 310 per share, and total amount of THB 12.09 million. LEO will finance this transaction from its equity capital raised from the initial public offering (IPO) and/or the working capital of the company.
After the transaction, Aramex International Logistics Private Limited (Singapore) will hold 49% of its shares, while LEO will hold 36% shares and Transpeed Asia will hold 15% shares.
Furthermore, Mr. Kettivit Sittisoontornwong, Mr. Kamol Maruttamam, Mr. Al-Jeda Othman Tarik and Mr. Inanda Ayanna Poonacha Alias Satish will be the board of Aramex.
LEO’s Executive Committee also approved the investment in a new joint venture company in Cambodia, to set up the new joint venture company to operate an integrated logistics service, which covers international and domestic transportation in Cambodia, cross border transportation between Thailand and Cambodia and other countries, distribution center and warehouse services, and customs clearance services in Cambodia.
The new joint venture company will have a registered capital of USD 2.55 million, divided into 2,550 ordinary shares, at the par value of USD 1,000, in which LEO will invest USD 1.02 million or 40% of the venture total share while other 60% will be invested by LogiCam Group. LEO will finance this transaction with the equity capital raised from the initial public offering (IPO), and/or the working capital of the company within March 2024.