KUALA LUMPUR: Century Logistics Holdings Bhd will see South Korea-based CJ Korea Express Asia Pte Ltd emerging as its single largest shareholder after it bought a 31.44% stake in the former.
There will be a change in Century Logistics’ majority shareholder when founder Datuk Phua Sin Mo and shareholders Datin Lee Lay Hun, Pamela Phua Jo Lyn and Chai Mee Young entered into a conditional sale and purchase agreement with CJ to dispose of their combined 31.44% stake amounting to 120.5 million shares for RM1.45 per share.
This confirmed a StarBiz report yesterday of the stake sale by Century Logistics main shareholders.
CJ vice-president for the strategy planning division, Ahn Jaeho, said that Century Logistics would be able to leverage on CJ’s strengths including its technology systems and solutions.
“We can also leverage on Century Logistics’ strong local customer base. We are now operating a parcel delivery service but it is still in its infancy.
"As we see e-commerce growing, we would like to focus on parcel delivery,” Jaeho said after the signing ceremony.
“We would like to strengthen and expand the parcel delivery service to become a major player in Malaysia,” he added.
In a statement, CJ said it would introduce its advanced technology, engineering, system and solution and know-how to Century Logistics to enable it to expand into the e-commerce and parcel delivery segments.
“The integration of CJ’s Asean network with Century Logistics’ network in Malaysia will complete the first step in CJ’s aspiration to be come the regional logistics leader,” it said.
CJ also planned to leverage on the facilities and infrastructure of Century Logistics in its core regions such as the Klang Valley and Johor, as well as the freight forwarding activities in the main ports to remain competitive.
“CJ and Century Logistics shall integrate their logistics and administrative activities, resulting in a larger network and more cost-efficient operation. CJ and Century Logistics are expected to benefit through the sharing of key logistics hubs and networks, cross-selling and new business opportunities,” it said.
CJ is a unit of public-listed CJ Korea Express Corp, which is the biggest logistics provider in South Korea.
CJ Korea Express has a market capitalisation of US$4.1bil and a revenue of US$4.6bil for its financial year ended Dec 31, 2015.
Century Logistics’ stock closed 7.5 sen lower on active trading yesterday to 96.5 sen after CJ failed to extend the offer to minority shareholders. The premium at which CJ acquired the stake was 40.5% above yesterday’s closing price of RM1.03.