KUALA LUMPUR: CJ Korea Express Asia Pte Ltd (CJ KEA), which is part of South Korea’s biggest logistics provider, CJ Korea Express Corp, is now the largest shareholder in Century Logistics Bhd after taking up a 31.44% stake in the latter.

CJ KEA inked a conditional sale and purchase agreement with Century Logistics’ major shareholders yesterday for the stake acquisition, representing 120.54 million shares, for RM174.78 million cash, or RM1.45 per share.

Besides confirming a report published in The Edge Financial Daily yesterday that CJ Korea Express would be emerging as a substantial shareholder in the firm, the agreement also confirmed an earlier report by the daily, published on Jan 5, 2015, that Century Logistics’ major shareholders were seeking to exit the firm.

CJ Korea Express said the equity acquisition in Century Logistics is just the beginning of what it views would be a “greater partnership” between the two companies.

“With our stake in Century Logistics, I feel much more confident now that we will be able to get one step closer to the vision of becoming [part of] the top five global logistics providers by 2020.

“By combining the core competitive advantages of both companies such as infrastructure and human resource, together with the brand value of Century Logistics in Malaysia and the technology, engineering, systems and solutions that CJ Korea Express has, we will become the No 1 logistic company in Malaysia,” CJ Korea Express chief executive officer Park Geun-tae said during the signing of the share purchase agreement yesterday.

The agreement was inked with Century Logistics’ founder Datuk Phua Sin Mo, together with his wife Datin Lee Lay Hun, and daughter Pamela Phua Jo Lyn, as well as Chai Mee Young, the wife of Teow Choo Chuan who is Century Logistic’s executive director.

The selling price of the shares is at a 39.4% premium over the closing price of Century Logistics shares of RM1.04 sen on Wednesday, a record high [price] after surging 22.35% since Sept 1. The counter closed 7.21% lower at 96.5 sen yesterday, with a market capitalisation of RM398.79 million.

After the signing ceremony, CJ Korea Express strategy planning division vice-president Ahn Jaeho said Century Logistics is the perfect fit for the group to achieve its goal of becoming a dominant player in Malaysia.

“By acquiring the stake in Century Logistics, it forms the beginning of a greater partnership between the two companies. CJ Korea Express is mainly focused on Korean consumers in [its home] country and so, with the integration of its network with Century Logistics’ network and customer base in Malaysia, it will complete the first step of the group’s aspiration of becoming a regional logistics leader,” he said.

CJ Korea Express’ entry will also be Century Logistics’ springboard into e-commerce and the parcel delivery sector.

Notwithstanding the intensifying competition in e-commerce and parcel delivery space now, Ahn said the group is confident the technology it has will be able to transform Century Logistic’s operations in Malaysia and turn it into an advantage for the group.

Another synergistic benefit is the sharing of key logistics hub and networks, cross-selling and the opening up of new business opportunities between the two companies, he added.

CJ Korea Express is an integrated logistics company in South Korea and Asia, with 86 years of history. It is a public listed company in South Korea, with a market capitalisation of 4.5 trillion won and global revenues of 5.1 trillion won for the financial year ended Dec 31, 2015.