SF Holding Co., one of the largest Chinese package delivery services, is seeking to acquire control of tycoon Robert Kuok’s Kerry Logistics Network Ltd. in a HK$17.6 billion (US$2.3 billion) deal.

The Shenzhen-listed courier plans to buy a 52 percent stake in Hong Kong-listed Kerry Logistics, SF Holding said in a statement Tuesday.

SF Holding will offer cash for the Kerry Logistics stake and plans to keep the company listed in Hong Kong, according to the statement. Kerry Logistics also plans to sell some warehouse assets for HK$13.5 billion, it said.

The offer, at HK$18.8 per share and valuing the total transaction at HK$17.6 billion, will be conducted by SF Holding unit Flourish Harmony Holdings Co. The price represents a 19.83 percent discount to Kerry Logistics shares’ last close of HK$23.45 Feb. 4, prior to a trading halt.

Shares of SF Holding, which were halted pending the announcement, resumed trading yesterday and closed the day up 10 percent.

Kerry Logistics offers air freight, trucking and ocean cargo services as well as customs brokerage and cross-border logistics for e-commerce companies. Its clients include fashion brands, food and beverage distributors, consumer goods companies, electronics manufacturers and other companies throughout the region.

Kerry Logistics will become SF’s international arm after the transaction is completed and together the companies will become Asia’s biggest logistics operator, executives from both companies said yesterday.

“We have been communicating with each other for three years. We think the transaction will benefit us in the future competition in the sector,” said Dick Wong, SF’s chairman.

The deal comes amid consolidation in China’s logistics sector since late last year, a development sparked by the country’s e-commerce boom during the COVID-19 pandemic.

The deal will help SF Holding boost its distribution network and supply chain services as it gains a footprint across Asia. SF’s shares have more than doubled over the past 12 months, helping it surpass FedEx Corp. in value and giving it a market capitalization of about US$75 billion. (SD-Agencies)