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VGI Global Media to buy 23% stake in Kerry Express for $183m

LBR Staff Writer Published 18 May 2018

VGI Global Media, a subsidiary of Bangkok Mass Transit System Public Company (BTS PLC) has agreed to purchase a 23% stake in Kerry Express, a subsidiary of Kerry Logistics Network, for around THB5.9bn ($183m).

Kerry Logistics has collaborated with BTS PLC to expand its business in Thailand, and it will also help to expand the presence in the ASEAN region.

The strategic partnership will help Kerry Express to expand its service portfolio with the addition of offline-to-online (O2O) solutions provided by VGI.

Kerry Express is said to become the only express logistics partner of VGI and Bangkok Mass Transit System (BTS Skytrain).

 The partnership will allow Kerry Express to use BTS Skytrain to expand its express delivery services, as well as customer base with the addition of more extensive delivery routes.

The deal will also provide Kerry Express with the right of refusal to set up service outlets in all BTS Skytrain stations for services such as parcel collection and drop-off.

Kerry Express will use additional infrastructure supplied by the BTS group of companies to enhance its operational efficiency and improve its services across the country.

The investment will also help VGI to expand its e-commerce business and establish physical connectivity with the consumer.

Kerry Logistics Group 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.”

Kerry Logistics, which is a major logistics service provider in Asia, offers end-to-end supply chain solutions for multinational corporations and international brands.

The company’s core business covers integrated logistics, international freight forwarding, express and supply chain solutions.

Image: VGI Global Media has agreed to purchase a 23% stake in Kerry Express. Photo: courtesy of Kerry Logistics.