Market Expects Quick Gains in KEX after a Change in Major Shareholder and Higher Tender Prices

The share price of Kerry Express (Thailand) Public Company Limited (SET: KEX) is expected to make a run at the opening bell on Monday, January 2, 2024, after the announcement of changes in major shareholders of the company.


KEX announced this morning that Kerry Logistics Network Limited (KLN), KEX’s indirect major shareholder indirectly holding 49% of shares and the majority voting rights in KLN Logistics (Thailand) Limited (KLNTH), has made a public announcement on The Stock Exchange of Hong Kong Limited on 29 December 2023 in relation to its conditional declaration of a special interim dividend to be effected by way of a distribution in specie of 907,200,000 KEX’s shares (representing approximately 52.1% of all issued KEX’s shares) indirectly held by KLN (through KLNTH) to its entitled shareholders in proportion to their then respective shareholdings in KLN on a record date to be announced by KLN, based on the distribution ratio of 0.5019 of a share of KEX for every one KLN share held (DIS Transaction).


Following the interim payment in KEX’s shares, SF International Holding (Thailand) Co., Ltd., a major shareholder of KLN, will hold 26% shareholding in KEX, and will be subjected to announce a tender offer in which SF Holding has set the offering price at THB5.50 per share.

It was also stated that SFTH has no current intention to make any material change to the business objectives, core business operation/ assets, business management plan, investment plan, management, financial structure or dividend policy of the Company during the period of 12 months after its tender offer closes, nor does it intend to (unless required by legal and/or regulatory requirements) delist the Company’s shares from the Stock Exchange of Thailand during the period. SFTH may however during the said period consider making necessary changes, as it deems appropriate, depending on the results of the tender offer.


The announcement came after KEX’s poor performance since the listing in the Thai stock market in late 2020. The share price rose as high as THB61.00 in February the following year and has been on a downtrend since then. KEX closed 2023 at THB4.94 per share.