SCGL and JWD reveal merger to integrate strength to take advantage of local service growth

BANGKOK, Oct 27, 2022 – (ACN Newswire) – SCG Logistics Management Company Limited (” SCGL”) and JWD InfoLogistics PCL (SET: JWD), the 2 leading logistics and supply chain company at the ASEAN level together revealed an essential merger offer to form a collaboration under SCG JWD Logistics PCL (SCGJWD) in a relocate to integrate strength and increase the service level ability to end up being the biggest Integrated Logistics and Supply Chains Solutions Provider in the ASEAN area with a wide range of incorporated services to cover all commercial groups to increase the chances for rapid development originated from the client bases of the 2 business, while preparing a method to broaden business in the ASEAN region.Mr. Charvanin Bundikitsada, Chairman of the Executive Committee and Chief Executive Officer of JWD Pcl. (JWD), exposed that the Company has actually continued to combine the Company with SCG Logistics Management Company Limited (SCGL), which is a subsidiary of Siam Cement PCL (SCC), following the Company’s Board of Directors’ Meeting on October 26, 2022 solving to propose to the investors’ conference to think about and authorize the merger in between JWD and SCGL. In this merger deal, JWD will provide brand-new normal shares to the quantity of not more than 791,020,363 million shares and use them as personal positionings (PP) to the existing investors of SCGL at the cost of 24.02 baht per share as payment for the transfer of all SCGL regular shares in a share swap. Following the conclusion of the share swap, SCGL’s existing investors will hold shares in JWD in the percentage of not more than 43.7 percent of all JWD’s ballot shares after the deal. In this regard, JWD will assemble the Extraordinary General Meeting of Shareholders No. 1/2022 on December 8, 2022 at 1: 30 p.m. at Banthat Thong Meeting Room, 6th Floor, JWD Store it!, after setting the record date to complete the list of authentic investors on November 10, 2022, to think about and authorize the merger strategy and the capital decrease and the boost of the Company’s authorized capital to 905,510,15300 baht from the initial 509,999,97150 baht through the issuance of brand-new regular shares as formerly specified. The merger deal of SCGL and JWD is anticipated to be finished within Q1/2023 Upon conclusion of the merger deal, JWD will alter its name to SCG JWD Logistics PCL with the SET-registered abbreviation of SJWD for share trading in the Stock Exchange of Thailand, The brand-new Company will be handled collectively by Co-Chief Executive Officers (Co-CEOs) – Mr. Bunn Kasemsup, representing SCGL, and Mr. Charvanin Bunditkitsada, representing JWD. SCGJWD will continue with the internal restructuring after the merger, when SCGJWD will accept the whole service transfers (EBT) of SCGL. This procedure is anticipated to be finished by the 4th quarter of2023 This merger integrates the specific strengths of the 2 business completely. These consist of JWD’s knowledge in specialized items such as temperature-controlled products, harmful products and vehicle, and so on, while SCG is the specialist in commercial items such as steel & building and construction products, paper & product packaging, and customer items, and so on. This synergy will assist to increase the ability to supply logistics services from upstream to downstream in addition to a big range of service designs covering warehousing, supply chain and multimodal logistics, in addition to the chance to develop more synergy in the future. The client bases of both celebrations do not overlap considerably, hence development from broadened client base of both celebrations and the acquisition of a big consumer base from within the SCG group will assist to preserve development and successfully decrease organization volatility. In regards to expense and management, the merger will instantly make SCGJWD the biggest incorporated logistics and supply chain company in ASEAN. This will lead to the growth of business, the combination of crucial assistance departments, in addition to the promo of the application of shared resources for optimum advantage. Business chances that the 2 celebrations have actually prepared together can be summarized in 3 parts: (1) Increased earnings from cross-sale and up-sale from the existing consumer bases of SCGL and JWD together with more expense savings; (2) The development of included worth to the existing services that both celebrations are specialists in, such as freezer, vehicle warehousing, harmful items storage and multimodal transportation, and so on; (3) Seamless connection of all service bases in the ASEAN area through the application of effective service designs in Thailand to cultivate development abroad; (4) Provide D2C (Direct to Consumer) services to satisfy the altering client requires through personal storage for lease, logistics for eCommerce companies, and reveal logistics; and, (5) Continuously enhance the scope of services in brand-new companies such as commercial property and software application advancement services for logistics management. “This merger offer is a big and essential endeavor that we have actually thoroughly thought about to be in the very best interest of investors. This relocation will allow us to grow robustly and sustainably in the difficult and unstable market conditions. Both JWD and SCGL are 2 completely fitted jigsaw puzzle pieces, with each having a various client base that can enhance the other. With the strong capacity of SCGJWD, we will have the ability to produce limitless and sustainable development, and will have the ability to provide the options that are genuinely a One Stop Service.” Mr. Bunn Kasemsup, Managing Director of SCG Logistics Management Co., Ltd., stated the merger with JWD is thought about to be the mix of knowledge of the 2 leading business in logistics services to additional boost the service ability and increase the development of business. SCGL has the proficiency in offering logistics and supply chain services for the commercial groups and numerous durable goods that have actually been amassed by supplying logistics services for business in the SCG Group and basic consumers, in addition to the constant financial investment in the advancement of development and innovation. These consist of the control tower logistics and supply chain management control, telematics system to track the information on the shipment paths and to forward cautions to chauffeurs, the automated storage and retrieval system (ASRS), and others. At the very same time, SCGL likewise runs Taksapipat School that is entrusted with safe driving training for truck motorists and forklift operators. SCGL has services in lots of nations as an outcome of the company growth to support the company advancement of the SCG Group, specifically in Vietnam, Indonesia, Cambodia, Lao PDR and the Philippines. The business can supplying cross-border logistics services from Thailand through Lao PDR and Vietnam to China, and barge transportation to surrounding nations such as Cambodia and Myanmar. In the portfolio is the worldwide sea-borne shipping service that can combine with that of JWD’s to broaden the scope of services to other nations in the ASEAN area. SCGL has a strategy to expand the rail and air logistics services. Therefore, upon the merger with JWD, we will have the ability to broaden the network of multimodal transportation services that will end up being a lot more detailed, to assist enhance expense management and produce included worth for business. This is very important due to the fact that the transport of items by ships and rail brings a lower expense than by roadway. The bigger client base will increase the chance in the carrying of both incoming and outgoing freight. In addition, more value will be put on sustainability, such as being “Green Logistics”, with the focus being on much better look after the environment and society through the decrease of energy usage consisting of using electrical transportation automobiles (EV) and making use of energy from solar roofing systems atop the storage facilities, and so on. On the cooperation in the growth of services abroad, we think about Vietnam, Indonesia and the Philippines as nations with high capacity due to their above-average financial development over and above the local average. There exists a requirement for storage facilities and logistics service suppliers to support the growth of the markets, while increasing the financial investment on the building and construction of more storage facilities in these nations to foster local development. “Upon this merger, we will end up being the leader in logistics and supply chain services, with the strength in supplying the most extensive Integrated Logistics and Supply Chain Solutions in the ASEAN area, in addition to developments and contemporary innovation to perform organization operations. Essential is that we have a strong brand name acknowledgment in both SCGL for its professionalism, and JWD for its experience in specialized logistics services. All these elements will allow us to end up being business leader in the area,” Mr. Bunn concluded. Launched for JWD InfoLogistics PLC by MT Multimedia Co Ltd
Yuttachai Praikanahok (Tle), T: +66(0 )91736 2866 or +66(0 )2 612 2081 ext. 125, E: Yuttachai.p@mtmultimedia.com Topic: Merger & Acquisition
Source: JWD InfoLogistics PCL
Sectors: Transport & Logistics, Funds & Equities
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