GDEX acquires 44.5% stake in Indonesian courier

GD Express Carrier Bhd (GDEX) and two of its wholly owned subsidiaries have taken up a 44.5% stake in PT Satria Antaran Prima TBK (SAP Express) via an initial public offering (IPO) for IDR92.71 billion (RM25.8 million) or IDR250 per share.

SAP Express is slated for listing this week.

GDEX told Bursa Malaysia that the group and two units GDEX Sea Sdn Bhd and GD Valueguard Sdn Bhd have subscribed for a 16.5%, 18% and 10% stake in SAP Express for RM9.57 million, RM10.43 million and RM5.79 million, respectively.

The subscription sum will be satisfied entirely in cash through internal generated cash and cash in hand.

Headquartered in South Jakarta, SAP Express mainly provides services in the express delivery segment, as well as transportation, distribution and warehousing.

As of March 2018, it is able to cover the whole of Indonesia supported by its 58 branches and 12 representative branches as well as more than 100 retail counters.

GDEX said the participation in SAP Express’ IPO will enable the group to tap into the fast-growing express delivery industry in Indonesia, which is also in line with the strategy of regional expansion starting with Indonesia.

“We believe Indonesia offers a vast growth opportunity for the courier business, supported by the growth of e-commerce as well as conventional business. The continuation of the company’s partnership with SAP Express will enable the company to provide business advice and support as well as knowledge transfer between the two companies.”

Its shares gained 1.5 sen or 3.6% to close at 43 sen today with 1.01 million shares changing hands.