Malaysia-based last-mile delivery company GD Express Carrier Bhd is acquiring a 50 per cent stake in Vietnamese courier and logistics service provider Noi Bai Express and Trading Joint Stock Company (Netco) for 76.73 billion dong ($3.29 million), according to a stock exchange filing.
The acquisition is targeted to be completed by January 2020, subject to approvals from relevant authorities. GD Express will fund the deal through internally generated funds.
The Malaysian company has signed an agreement to acquire Netco shares from three shareholders, namely Nguyen Duc The, Trieu Lan Huong and Nguyen Duc Hau. Upon completion of the transaction, it will become the largest shareholder in the Vietnamese firm.
GD Express also plans to ink a shareholder agreement with the remaining Netco investors, namely 3 Comma Capital Company Ltd (which holds a 20 per cent stake), Trieu Lan Huong (14.52 per cent), Nguyen Duc The (14.52 per cent), Nguyen Xuan Hiep (0.4 per cent), Nguyen Thanh Trung (0.33 per cent) and Tran Thi Thuy Hang (0.24 per cent).
The Netco stake acquisition is in line with GD Express’s ambition to build a regional delivery network in Southeast Asia and follows its expansion into Indonesia.
In October 2018, GD Express and its subsidiaries had acquired a 44.5 per cent stake in Indonesia’s last-mile delivery company Satria Antaran Prima (SAP Express) for 92.71 billion rupiah. The company acquired the stake in SAP Express stake during the latter’s initial public offering (IPO) process.