Golden Opportunity for BTS to Offload Kerry Express

This could be the best chance for BTS Group Holdings Public Company Limited (SET: BTS) to cut uncertainties off its portfolio as the investment in Kerry Express (Thailand) Public Company Limited (SET: KEX) did not yield the result that the company had expected it to be.

BTS purchased Kerry Thailand at a very high price back in the day that the logistic firm started trading in the Thai stock market in 2020. The company did averaging down as the share price of Kerry Thailand continued to slide, as did its subsidiary, VGI Public Company Limited (SET: VGI) that also bought KEX at a high price.

The share price of KEX once reached THB 73.00 per share on its first trading day, which is a large amount of gain from its IPO of THB 28.00 per share. However, the Covid-19 pandemic and more competitors in the market these past few years hindered KEX’s performance. The share price had been plunging to around THB5.50 as of this week.

BTS reported a share of loss of THB 196 million from Investments in Kerry Express (Thailand) in its FY2Q23 ended September 30, 2023. In FY 2022/23, the company recorded a share of loss of THB 711 million.

Due to these losses, there is no doubt that shareholders such as BTS and VGI are considering to divest their investment in KEX, even though it would come with an impairment loss.

The announcement to tender all of KEX’s shares by SF Holdings earlier this week could give BTS and VGI the opportunity to do so. The said buyer is expected to launch the offer by 13 February 2024.

If BTS can offload this burden, then all the worry that is left would be the loss in Jaymet Group, especially Singer Thailand Public Company Limited (SET: SINGER), and its own infrastructure fund, BTSGIF.