Chinese express delivery giant SF Express has struck an HKD8.3 billion cross-shareholding agreement with multinational courier company J&T Express, which will see them issue and allot new shares to each other. Herbert Smith Freehills Kramer (HSF), Linklaters and Global Law Office advised on the transaction.
Under the agreement signed on 15 January, J&T Express will issue and allot 822 million B shares to SF Express at HKD10.10 per share, while SF Express will issue and allot 226 million H shares to J&T Express at HKD36.74 per share. On completion, SF Express will hold a 10% stake in J&T Express, while J&T Express will become a 4.29% shareholder in SF Express.
HSF advised SF Express on Hong Kong law matters, with the team led by partner Jason Sung, China’s head of corporate. Partner and Asia’s head of competition Adelaide Luke led the team providing competition law advice, supported by counsel Howard Chan. Global Law Office acted for SF Express on China law matters.
Linklaters was the legal adviser to J&T Express.
SF Express said the transaction “is of significant strategic importance”, adding that it would leverage J&T Express’s delivery network and local expertise in Southeast Asia, expand its international business and enhance its competitiveness.
This cross-shareholding deal is not the first co-operation between the two companies. In 2023, J&T Express acquired Fengwang Express, SF Express’s lossmaking low-cost logistics delivery business.
SF Express is Asia’s largest and the world’s fourth-largest integrated logistics service provider. It was listed on the SZSE in 2017 and subsequently on the HKEX in 2024.
Chinese entrepreneur Li Jie founded J&T Express in 2015 in Jakarta, Indonesia, and the company entered the Chinese market in 2020. Southeast Asia is J&T Express’s core market, with its delivery footprint spanning 13 countries, including Indonesia, China, Vietnam, Malaysia, the Philippines, Thailand, Cambodia, Singapore, Saudi Arabia, the United Arab Emirates, Mexico, Brazil and Egypt.
