WICE to acquire Singapore logistics company
WICE LOGISTICS has struck a deal to acquire Singapore-based Sun Express Logistics (SEL) for Bt424.97 million, aiming at business expansion in Asean.
“We have signed an agreement on business cooperation with SEL, which focuses on air-freight services, especially for the electronics industry,” WICE chief executive officer Araya Kongsoonthorn said.
Under the deal, which recently received approval at a WICE extraordinary shareholders’ meeting, the company will buy all 700,000 shares of SEL by way of a cash payment and swapped shares. SEL’s par value is 1 Singapore dollar.
The total value of the transaction is Bt424.97 billion.
The share acquisition will be divided into two parts. First, WICE will pay Bt290.64 million, in the form of cash and WICE shares, for 70 per cent of SEL shares.
In the second phase to be transacted in 2020, the company will pay for the remaining 30 per cent of SEL, either in the form of WICE shares or cash. Under the share-swap deal, WICE will issue 51.9 million new shares to sell to the SEL shareholders at Bt2.80 each via private placement.
WICE’s capital will be increased from Bt300 million to Bt325.95 million after issuing the new shares. WICE’s par value is 50 satang per share.
Immediate gains
WICE can opt to pay for the remaining 30 per cent of SEL shares by way of a cash transaction between January 1 and August 31, 2020. The cash payment would be valued at Bt134.34 million.
Araya said that after the first phase of the deal is complete, with a 70-per-cent shareholding, WICE would be able to realise gains this year.
Last year, SEL posted Bt61 million in net profit on Bt480 million in total revenue. The net margin was 12.57 per cent.
In the same period, WICE posted Bt61 million in net profit and Bt682 million in revenue. The net margin was 8.79 per cent.
“The transaction is considered a good strategy for WICE, expecting that its revenue can jump by 70 per cent to between Bt1.1 billion and Bt1.2 billion this year,” Araya said.
She added that the acquisition would give WICE a chance to expand into Asean, including value-added products to serve a wider range of customers. The company’s air-freight shipments would double.
