logo

Malaysia: GD Express to buy Vietnamese logistics company

  • Oct 16, 2019

PETALING JAYA: GD EXPRESS CARRIER BHD  (GDex) is making a foray into Vietnam by acquiring a courier and logistics services company, Noi Bai Express and Trading Joint Stock (Netco), for a total of RM13.85mil.

In a statement on Bursa Malaysia yesterday, the logistics company said it is acquiring 50% of the total enlarged issued share capital of Netco. The issued share capital of Netco is 70,853,680 Vietnamese dong comprising 7,085,368 ordinary shares of 10,000 dong per share.

In line with the group’s aim to build a sustainable South-East Asian delivery network, the logistics company said the expansion into Vietnam is the continuation of its expansion efforts after Indonesia.

The proposed acquisition is expected to be completed by January next year, pending approval from the relevant authorities.

“The proposed acquisition may not be able to proceed if the approval from the Vietnamese authority is not granted, or the vendors’ failure to fulfil their obligations set forth in the share sale and purchase agreement (SSPA) or any breach of conduct up to completion of the SSPA, ” the company said.

Given the price consideration of Netco, GDex said the pricing of the acquisition is on the back of the growth potential of Netco and extensive delivery network of 63 provinces in Vietnam.

It added that the acquisition would be funded through its internally generated funds.

Netco has four hubs, 45 branches and lodge-in centres and 47 points of delivery.

For the financial year ending June 30,2020 (FY20), the logistics company noted that the proposed acquisition does not have any effect on the issue share capital as well as earnings and net assets of the group. Moving forward, GDex expects the proposed acquisition to contribute positively to the future earnings of the group.

“The highest percentage ratio for the proposed acquisition pursuant to the Main Market Listing Requirements of Bursa Malaysia is 8.5% based on the company’s latest audited financial statements for FY18, “it said.

Source: https://www.thestar.com.my/business/business-news/2019/10/16/gd-express-to-buy-vietnamese-logistics-company#FcoqAsJTyl5dQ4Wl.99