The share price of Kerry Express (Thailand) Public Company Limited (SET: KEX) hit the ceiling on Tuesday following the announcement of changes in major shareholders and a tender offering price that is higher than the closing price of last year.
KEX soared THB1.46 or 29.55% to THB6.40 per share in the morning session on Tuesday. The surge came after Kerry Logistics Network Limited (KLN), KEX’s indirect major shareholder of KEX made a public announcement on The Stock Exchange of Hong Kong Limited on 29 December 2023 in relation to its conditional declaration of a special interim dividend to be effected by way of a distribution in specie of 907,200,000 KEX’s shares (representing approximately 52.1% of all issued KEX’s shares) to its entitled shareholders.
Following the interim payment in KEX’s shares, SF International Holding (Thailand) Co., Ltd., a major shareholder of KLN, will hold 26% shareholding in KEX, and will be subjected to announce a tender offer in which SF Holding has set the offering price at THB5.50 per share.
The announcement came after KEX’s poor performance since the listing in the Thai stock market in late 2020. The share price rose as high as THB61.00 in February the following year and has been on a downtrend since then. KEX closed 2023 at THB4.94 per share.
Normally, the share price would rally to the level of the offering price, but the market is reacting more positively than anticipated as the current share price is 16% higher than the offering price.
Meanwhile, VGI Public Company Limited (SET: VGI) is also one of the major shareholders of KEX with a proportion of around 15.5%. The share price of VGI rose THB0.39 or 20.21% to THB2.32 per share on a positive sentiment from KEX, though the company has nearly THB3,000 million of unrealized loss due to the cost of KEX that the company purchased at the price around THB18-20 per share.
BTS Group Holdings Public Company Limited (SET: BTS) recorded a 1.38% gain this morning as the company holds around 5% of KEX’s shares.
