Wice to scoop up logistics firm
SET-listed Wice Logistics Plc has begun the process of acquiring a Singaporean aerial logistics provider, Sun Express Logistics (SEL).
The deal is expected to help boost total revenue by 70% to 1.2 billion baht this year, said Wice chief executive Araya Kongsoonthorn.
The acquisition is meant to increase its customer base in the region after the integration of the Asean Economic Community (AEC), which is expected to ratchet up demand on logistics.
Ms Araya said Wice had signed an agreement to acquire 100% of SEL’s ordinary shares for 424.97 million baht.
“The acquisition plan was approved by the board of directors,” she said.
Ms Araya added the acquisition would be divided into two phases, the first of which would entail purchasing 70% of SEL shares in the form of cash and WICE shares.
The remaining 30% would be purchased with WICE shares and/or cash.
Concerning the share-swap deal with SEL, Wice would increase its capital through a private placement of 51 million shares. Following the swap, the company will have registered capital of 325.95 million baht, up from 300 million at present.
Ms Araya said revenue would start to increase immediately after the acquisition.
In the previous year, SEL had total revenue of 480 million baht with a net profit of 61 million baht, while Wice had total revenue of 682 million baht and a net profit of 61 million baht, she said.
“This acquisition will help boost revenue to as high as 1.2 billion baht, or around a 70% increase over the previous year,” said Ms Araya.
Moreover, the move, which will boost its customer base in Asean countries, will help increase profitability in the long term.
Ms Araya said the larger Asean customer base would result in greater demand on aerial logistics, with the integration of the AEC pushing demand on air freight to double over the next few years.
Through the acquisition of SEL, which provides integrated aerial logistic services, the company will be better positioned to capitalise on it the great air freight shipments.