CN Logistics International Holdings Limited
(Incorporated in the Cayman Islands with limited liability)
CN Logistics Completed Acquisition of Italy and Switzerland Subsidiaries
Expanding Presence in Europe to Capture Post-COVID Recovery
[Hong Kong - 19 November 2021] A well-established international logistics solutions provider, CN Logistics International Holdings Limited (the "Company", together with its subsidiaries, the "Group", stock code: 2130), is pleased to announce that it has completed the acquisition of two non-wholly-owned subsidiaries in Italy and Switzerland, granted by a resolution of the Shareholders passed at the EGM held on 5 November 2021. The strategic acquisition represents a major step to expand its Italian branch into a European business hub, allowing the Group to strength its business presence and hence, capture the market recovery, in the European region.
Pursuant to the Share Purchase Agreements, the Group issued and allotted an aggregate of 10,000,000 consideration shares to each of Mr. Di Nello and Ms. Morandin (directors of CN Switzerland and CN Italy) at the issue price of HK$8.0 per share. Along with the cash consideration of EUR500,000, the Group has acquired the remaining 40% and 30% of the issued share capital of CN Switzerland and CN Italy respectively, with the two subsidiaries becoming wholly-owned subsidiaries of the Company. Immediately following the completion, Cargo Services and other connected persons of the Board will hold 73.1% of its shares, while public shareholders will hold the remaining 26.9%. The acquisition is expected to provide immediate financial benefits to the Group, as their financial results will be consolidated into the Group's consolidated statements of profit or loss in the future.
With Europe being the origin of many luxury brands, the acquisition is also expected to further expand the Group's presence in the region, allowing it to integrate valuable local resources, including customer portfolio and highly complementary talents, and seize the huge opportunities brought by economic recovery in the post-COVID era.
Mr. Ngan Tim Wing, Executive Director and Chief Executive Officer of CN Logistics, commented, "Europe has been strategically important to our business, and the acquisition would allow us to optimize out network and accelerate our business development in the area. As the fully vaccination rate of Italy reached over 82% for population aged over 12, we believe it is a good destination to establish our servicing hub, in which we can use to radiate our services to other countries in the European region. With the recent cooperation with JD Express, our Group will be providing overseas transportation and warehouse services to them in Italy. The rising vaccination rate in the region should also promise business opportunity, as the resumption of economic activities should lay a solid foundation for economic rebound, and in turn, leading to a spike in demand of luxury goods as well as its logistics services."
"Other than Europe, we will also explore opportunities in the South East-Asian market. Supported by the establishment of our first office in Malaysia earlier this year, as well as the establishment of "Regional Comprehensive Economic Partnership Agreement" (RCEP)", we will actively grasp new business opportunities, such as the possibility of providing European logistics services to Asian e-commerce platforms, in order to create extra value and fruitful returns to our customers and shareholders."
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About CN Logistics International Holdings Limited
Established in 1991, CN Logistics is a well-established international logistics solutions provider with core business of providing air freight forwarding services and distribution and logistics services in relation to fashion products and fine wine, primarily focusing on high-end fashion (including luxury and affordable luxury) products. According to the CIC Report, the Company ranked first in the distribution and logistics market for high-end fashion products in both the PRC and Hong Kong in 2019.
This press release is issued by DLK Advisory Limited on behalf of CN Logistics International Holdings Limited.
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19/11/2021 Dissemination of a Financial Press Release, transmitted by EQS Group.