BEST To Sell Express Business In China

BEST To Sell Express Business In China
  • BEST Inc BEST has agreed to sell its express delivery business in China to J&T Express Co., Ltd., a PRC limited liability company and a logistics services provider, at ~RMB6.8 billion ($1.1 billion) enterprise value.
  • BEST currently expects to receive ~RMB3.9 billion ($0.6 billion) for the express delivery business in cash and close the sale in the first quarter of 2022.
  • The sale does not include any of BEST's other businesses, namely, Supply Chain Management, Freight, Ucargo, and Global. 
  • "In light of the unexpected ongoing challenges from COVID-19 and evolving industry dynamics, we believe this transaction allows us to better capitalize on our strengths by focusing on supply chain-based logistics solutions and providing integrated supply chain, freight, and global logistics services to our customers. At the same time, it will enhance our balance sheet and provide a better pathway to profitability," commented CEO Johnny Chou.
  • Price Action: BEST shares are trading higher by 10.9% at $2.34 during the premarket session on Friday.
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