Kerry Logistics has today announced that Kerry Express – a subsidiary of the company and a parcel delivery company in Thailand – has entered into an agreement with VGI Global Media the subsidiary of offline-to-online provider (O2O) Bangkok Mass Transit System.
Kerry Logistics, together with existing shareholders of Kerry Express, have agreed a transaction of 23 per cent of the total issued share capital of Kerry Express to VGI, in a deal worth about THB 5.9 billion (approximately HK$1,475 million).
With this strategic partnership, Kerry Express says it will expand its service portfolio tapping the fast-growing O2O demand through the venture with VGI.
Kerry Express will become the only express logistics partner of VGI and Bangkok Mass Transit System (BTS Skytrain). The collaboration will enable Kerry Express to use BTS Skytrain to extend its express delivery services and to expand its customer base by adding more extensive delivery routes.
Upon the signing of agreements, Kerry Express will also have the first right of refusal to set up service outlets in all BTS Skytrain stations for services such as parcel collection and drop-off.
Through the additional infrastructure provided by the BTS group of companies, Kerry Express will further improve its operating efficiency thereby enhancing its service level and improving its growth performance across the country.
VGI will solidify its establishment within the O2O ecosystem by further penetrating the digital online marketing sector in Thailand. The investment also enables VGI to have physical connectivity for the consumer, with a particular focus on the rapidly-expanding e-commerce business. VGI will also strengthen its capabilities in tailor-made advertising solutions.
Kerry Logistics managing director, William Ma said: “This joint venture navigates new growth opportunities and connectivity with an ever-evolving e-commerce ecosystem. As Asia’s premier logistics service provider, our expansion in Thailand will further strengthen the Group’s market position in the ASEAN countries, and add value to our express business in Thailand.
“We are confident in achieving good results and will continue to explore opportunities in other countries for our sustained development in the global market.”