KEX Rises 2% on Last Tender Offer Day, BTS Remains Positive on Business

At the end of the morning session on Friday, the share price of Kerry Express (Thailand) Public Company Limited (SET: KEX) rose by 1.90% or THB 0.10 to THB 5.35, with a trading value of THB 216.33 million.

The share price increased on the last day of the purchasing period for the tender offer from S.F. Holding Co., Ltd., starting from 13 February to 22 March 2024.

Mr. Keeree Kanjanapas, Chairman of the Executive Committee of BTS Group Holdings Public Company Limited (SET: BTS), stated via “Kaohoon” that the BTS Group and VGI Public Company Limited (SET: VGI) would only divest some parts of KEX that the group currently held, as it saw the potential for transportation and logistics businesses in the future, even though many operators chose to deliver products by themselves. The group believed that the demand for product delivery would continuously grow and operators would return to delivering their products through the business, as it was more convenient.

At present, BTS holds a proportion of KEX shares of 5.72%, while VGI holds 15.45%.

Meanwhile, BTS has not planned to utilize the fund from the divestment of KEX, as the company currently has a good liquidity ratio and the fact that by the end of March, the Bangkok Administration (BMA) will pay its debt for the Electrical and Mechanical Contract (E&M) of the second extension of BTS Green Line with a financial amount of THB 23,488.69 million, which will further support the cash flow of the company.

KGI Securities (Thailand) expected VGI to receive more benefits from the divestment of KEX compared to BTS, as the company held more shares. BTS, though, would gain indirect benefit from lower recognition of losses from KEX, making a better business operation for the company. The partial divestment of KEX from BTS and VGI could be because of the fact that both companies wanted to keep their smooth relationships with KEX while also hoping for its business operations to recover.

Regarding the debt payment from BMA, the analyst saw it as a benefit for the cash flow of BTS by improving the company’s liquidity as well as allowing the company to pay debts and achieve its investment plans.

The report data from the Refinitiv consensus gave target prices for BTS, VGI, and KEX at an average of THB 8.18, THB 2.35, and THB 7.02, respectively.