WICE expands reach in deal
THAILAND-based WICE Logistics Plc has closed a deal to buy a majority stake in Hong Kong logistics operator Universal Worldwide Transportation (UMT) in order to expand its reach to mainland Chinese and Hong Kong customers.
The company has also begun preparing for a restructuring aimed at enhancing its brand in the Asian logistics market with a target for revenue to rise 30 per cent to Bt1.8 billion this year, the company’s managing director for business development Chudet Kongsoonthorn said in a statement yesterday.
He said the company disclosed that it had entered into the share transaction, making a first instalment payment of Bt39.86 million to purchase the common stock of UWT on January 4.
This move falls under a plan to buy 80,000 UWT common shares at a par value of HK$10, accounting for 80 per cent of the total common stock of UWT.
The investment value of the purchase is Bt115.03 million, with the balance of Bt75 million to be paid over the next five years.
The acquisition of UWT provides WICE with “important business opportunities at an international market level”.
“The company has a plan to co-expand the business in China through Guangzhou Universal Worldwide Transportation Limited (GUWT), a subsidiary of UWT, which has customers and complete logistic services in important business areas in China,” Chudet said.
“This will lead to an increase in our customer base, which is beneficial to the company's proficiency to increase its revenue and profitability in the future.”
He added that the company's 2018 business operation plan focused on an organisational restructuring by enhancing the WICE brand to become the leading logistics service provider in Asia, particularly in China, as the biggest market.
“Therefore, all the acquired companies' names would be changed, for instance Sun Express Logistics Pte Ltd (SEL) to WICE Logistics (Singapore) and UWT to WICE Logistics (Hong Kong), which helped WICE to receive better recognition and facilitate cooperation between affiliated companies with effective network connection,” he said.
“The company's revenue target of 2018 is at Bt1.8 billion, increasing by 30 per cent from that of 2017, and we are confident of meeting the target of Bt1.3 billion. The growth factor comes from the expansion of all-type service operations, which consists of sea freight, air freight, customs service, domestic transport and warehouse management.”
