JWD gets shareholders' greenlight to merge with SCGL to advance business To be ASEAN's largest integrated logistics & supply chain service provider

Friday 09 December 2022 10:12
JWD InfoLogistics Public Company Limited (JWD) announced that the Company has received the approval from shareholders to merge with SCG Logistics Management Company Limited (SCGL). The merger process is expected to be completed within Q1/2023 and the Company's name changed to SCG JWD Logistics Public Company Limited with the new abbreviation "SJWD" for share trading. This union is an amalgamation of strength to forge ahead to become the largest and leading integrated logistics and supply chain service provider in the ASEAN region, offering logistics and supply chain services covering the entire end-to-end process to meet the needs of customers in all industries and increase the efficiency of various forms of transportation services, benefiting in the reduction of costs in all areas.
JWD gets shareholders' greenlight to merge with SCGL to advance business To be ASEAN's largest integrated logistics supply chain service provider

Mr. Charvanin Bundikitsada, Chairman of the Executive Committee and Chief Executive Officer of JWD Pcl. (JWD), ASEAN's recognized expert in logistics and supply chain, revealed that on December 8, 2022, the Company received the approval at the JWD Extraordinary Shareholders Meeting 1/2022 to merge with SCG Logistics Management Co., Ltd. (SCGL) by way of Share Swap by capital reduction and increasing the Company's registered capital to 905,510,153.00 baht from the original 509,999,971.50 baht. In the next step, the Company will issue not more than 791,020,363 newly-issued ordinary shares with a par value of 0.50 baht per share for allocation and offering through private placement (PP) to shareholders of SCGL at a price per share of 24.02 baht as consideration for the transfer of ordinary shares of SCGL instead of cash payment. After the completion of this share swap transaction, SCG Group will hold approximately 42.9 percent of JWD's total voting shares.

This merger transaction is expected to be completed within the first quarter of 2023, after which the Company will change its name to SCG JWD Logistics Public Company Limited with the new abbreviation "SJWD" for share trading on the Stock Exchange of Thailand and will begin the consolidation of the financial statements of the two companies which will have a positive effect on the Company's exponential growth. At the same time, there will be a change in the new Company's management structure with Mr. Charvanin Bunditkitsada, representing JWD, and Mr. Bunn Kasemsup, representing SCGL group, jointly managing as Co-CEOs (Co-Chief Executive Officers) and will together undertake the internal restructuring. It is expected that the Entire Business Transfer (EBT) of SCGL to the Company will be completed within the fourth quarter of 2023.

The Chairman of the Executive Board and CEO of JWD said that the merger with SCGL will create synergies and combine the strengths of the two companies to increase the capability of doing business to ultimately become "the largest integrated logistics and supply chain provider in ASEAN". JWD has expertise in logistics and supply chain for specialized products such as cold storage, hazardous goods storage, automotive storage and management, etc. On the other hand, SCGL specializes in providing services to industrial customers such as steel and construction materials, paper and packaging, etc. Together, the new Company will be able to offer turnkey and end-to-end services to meet the needs of customers in all industries, while increasing the efficiency of multi-modal transportation services by road, ship-borne and rail, as well as being able to offer additional services to the existing customer bases of both parties in the form of cross-sale and up-sale to increase revenue for the new Company, including international transportation services, cold storage, and barge cargo transport services.

Moreover, the merger will benefit through the reduction of costs and redundant expenses as well as in the more efficient allocation of investment budget. This is because the two companies can more cost-effectively utilize combined resources such as warehouses, transport vehicles, IT technology, etc., which can leverage the collective strengths in innovations and digital technology to increase service efficiency and manage costs. There will also be an exchange of knowledge to improve operational efficiency, reduced cost of service through having a larger customer base leading to stronger financial position and the lowering of financial costs.

"The integrated SCG JWD Logistics Public Company Limited will more quickly strengthen and increase the opportunities for business expansion in the ASEAN region, including M&A business expansion investments in high potential companies. The Company remains committed to proactively manage and to expand the business to lead SJWD towards sustained growth to become the leading integrated logistics and supply chain service provider in the ASEAN region," Mr. Charvanin concluded.

Source: MT Multimedia Company