YTO Express Group Co Ltd Takes Over the Hong Kong Listed International Freight Forwarding Operator Accelerate International Strategy and Support the Belt and Road Building.
The Chinese leading and comprehensive express logistics provider, YTO Express, is taking another step forward in internationalization. In the evening on 8 May 2017, YTO Express published the announcement that it has completed the acquisition, in aggregate, 255,820,000 shares, representing approximately 61.87% of the share capital of On Time Logistics Holdings Limited (stock code 6123.HK) (hereinafter referred to as “On Time Group”), a main board listed company in the Stock Exchange of Hong Kong in a cash transaction. The total consideration for the shares is HK＄1,041,116,160.00, equivalent to HK＄4.0698 per share.The alliance will form the new benchmark for Going Global of the China Express.
Acquisition of the International Freight Forwarding Operator On Time Group
On 8 May 2017, Mr. YU Huijiao, the Chairman of the board of Directors of YTO Express as well as the President, Ms. ZHANG Xiaojuan, the Director of YTO Express, Mr. LAM Chun Chin, Spencer, the Chairman of the board of Directors of On Time Group as well as the Chief Executive Officer, Ms. WONG Pui Wah, the Director and the Chief Financial Officer of On Time Group, and Ms. CHEUNG Ching Wa, the Director and General Manager of On Time Group and the team of officers from each company attended the signing ceremony at the headquarter of YTO Express in Shanghai. During the signing ceremony, Mr. YU Huijiao expressed that the completion of the acquisition marked YTO Express going global, and stepped another firm step in supporting the Belt and Road Building.
As the first listed express company, YTO Express has built up 62 self-operating axis transshipment centers in China at the year of 2016, 2,593 franchisees, 37,713 terminal branches, and owned 5 aircrafts. At the moment, YTO’s express network has basically covered all prefecture-level cities, and gradually generated express line products covering Hong Kong, Macau, Taiwan, South East Asia, Central Asia, Europe, America, Australia, Korea and Japan in order to realize the express delivered to main overseas markets. In 2016, the courier number has been at 4.46 billion, the market scale has been among the biggest. The business income is RMB 16 billion and 818 million which has increased by 39.04% comparing to last year.
On Time Group is a well-developed and expanding international freight forwarding service provider which is mainly in air and sea freight forwarding services to provide customers with warehousing, delivery, customs clearance, contracting and the ancillary logistics services. At the moment, On Time Group has owned company entities in 17 countries and areas and 52 self-built stations in the world. Its business covers more than 150 countries with more than 2, 000 international airlines. On Time Group has established a large set of customers covering freight forwarding agents and direct customers in different industries (including garments, footwear and electronic products).
Mr. YU Huijiao expressed that along with the further integration of international economic development and the further commercial and business exchange, the international express logistics scale is continuously growing, the international network coverage of express logistics enterprises and the product creation and service ability have become the important elements in the future international competition.
In recent years, YTO commits to becoming the world leading comprehensive express logistics operator and supply chain integrator. To enter the overseas market, link domestic and international logistics, and develop domestic express logistics service ability is a necessary path of company international development.Through this acquisition of On Time Group, the company could obtain the worldwide network strategy, line transportation ability and customs ability, and its experienced and localized management and operation team with years of development.