Dayang Trands to take over courier company YTO
March 29, 2016 Category Mergers & Acquisitions, Weekly
Chinese clothing maker Dalian Dayang Trands Co has agreed to buy Alibaba-backed courier company YTO Express for CNY17.5 billion through an asset swap and share issue, resulting in a backdoor listing on the Shanghai bourse for the courier company. The asset swap will involve Dayang Trands transferring its assets to YTO Express’ shareholders. As a result of the transaction, the shareholders will ultimately own Dayang Trands. China’s mostly privately held express delivery firms are eying mergers and listings to help cope with cut-throat competition and growing investment demands amid the country’s e-commerce boom, led by Alibaba Group. The express delivery sector grew around 50% each year between 2010 and 2014, and handled 14 billion parcels last year, data from the State Post Bureau showed. In May last year, Alibaba Group and Yunfeng Capital, a fund backed by Alibaba’s Founder Jack Ma, announced a strategic investment in YTO Express. In December, Chinese delivery firm Shentong (STO) Express closed a CNY16.9 billion reverse takeover deal with a Shenzhen-traded valve maker, a fast track way of becoming the first major express parcel service to be publicly listed, the Shanghai Daily reports.
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