SF’s Kerry acquisition ‘transformational’

SF Holding, a Shenzhen-based package delivery services provider, has announced its acquisition of a 51.8% stake in Hong Kong-listed Kerry Logistics Network (KLN) for HK$17.6 billion (US$2.3 billion).

Linklaters advised KLN, while Slaughter and May acted as counsel for SF Holding.

“This is really a transformational partnership,” Christopher Yip, a partner at Linklaters, told China Business Law Journal. “We believe this will transform the global logistics market, combining two leading players and allowing them to leverage their respective strengths.

“There were many different components to this transaction, all of which had to be pieced together.”

Yip said the deal structure was complicated. “Partial offers are still relatively rare, and there were respective commercial requirements from SF Express and the Kerry Group to hold minimum shareholdings, which made the structuring of the transaction quite difficult,” he said.