Kerry Express Thailand has entered into agreements with VGI Global Media, the subsidiary of Bangkok Mass Transit System and one of Thailand’s top Offline-to-Online (O2O) solutions providers. Kerry Logistics has agreed to dispose 23% of the total issued share capital of Kerry Express to VGI, for a consideration of THB 5.9 billion (approximately $180m).
With this strategic partnership, Kerry Express will expand its service portfolio tapping into O2O demand through the venture with VGI. Kerry Express will become the only express logistics partner of VGI and Bangkok Mass Transit System. Kerry says the collaboration will enable it 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 aims to improve its operating efficiency thereby enhancing its service level and improving its growth performance across the country.
VGI for its part 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.
William Ma, Group Managing Director of Kerry Logistics, 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.”
Source: Kerry Logistics
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