Leading Japanese parcels group Yamato is aiming for growth in South-East Asia through a 10% stake in and strategic cooperation with Malaysian express operator GDEX and is working on plans for an ASEAN delivery network.
Yamato will spend RM 217 million (€47 million) on acquiring new shares in the listed company and “has the intention” to increase its holding to 23% in future. SingPost already has a 23.5% stake in the Malaysian express firm.
The Japanese group said the main purpose of the alliance with GDEX is to expand its parcel delivery business in the country. Its ‘TA-Q-BIN’ parcel delivery service was launched in Malaysia in 2010. The group will use GDEX, whose main business is B2B express deliveries via a nationwide delivery network, in areas that its local subsidiary does not cover while the two companies will also collaborate on cross-border deliveries between Malaysia and Singapore as well as in the ASEAN region.
“Going forward, GDEX and Yamato Holdings believe that a stronger partnership formed via a business collaboration and capital alliance will enable both parties to capitalize on each other’s strengths and together expand to become the leading delivery company in Malaysia,” the two firms said.
But looking further ahead, Yamato commented: “With prospective benefits from both TPP and AEC (ASEAN Economic Community), it is highly expected that demand for South East Asia’s intra-regional trade will be exponentially increased. By providing cross-border transportation services which is integrated with a last-mile network throughout this region, we would like to promptly build a strong position in the market.
“To accelerate Yamato Group’s growth in this region, we will actively make business alliances and execute cross-border M&A to establish a parcel delivery network across ASEAN and to enhance freight forwarding and logistics functions.”
GDEX had revenues of RM 197 million in the year ending June 2015, up from RM 159 million the previous year, and improved its pre-tax profit to RM 31 million from RM 24 million in 2013/14. About 80% of the revenues are generated from B2B express deliveries while B2C has grown to 20% in recent years.
