CITIC, CDH, Legend invest $300m in China freight business

The notes, which have a one-year tenor with zero interest, will convert into newly issued shares at $2 apiece, subject to certain conditions, according to a filing. If fully converted, CITIC, CDH and Legend will hold stakes of about 4%, 3% and 3%, respectively.

SF Express created the freight unit in 2015 and spun it out as an independent brand last year. It specializes in less-than-truckload (LTL) shipping, a transportation service for relatively small loads.

SF Freight generated an operating income of RMB12.5 billion ($1.8 billion) in 2019 and a net loss of RMB379 million. The brand was valued at RMB9.9 billion to RMB11.2 billion as of August 2019, according to an assessment by KPMG cited in the filing.

CITIC was a member of the investor group that acquired a 25% stake in SF Express for RMB8 billion in 2013 and saw the business list four years later at a valuation of RMB43.3 billion. CDH's pre-existing relationship with the company is through an investment in Hive Box, a smart storage player established by SF Express and several of its peers.

SF Freight is the third capital raise in China’s logistics space this year. In January, Centurium Capital has invested $300 million in ANE Logistics, one of the country's largest LTL operators. This was followed by a RMB1 billion extended Series D round for Yimidida, which took place in parallel with the company's acquisition of Shanghai-based UC Express.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Industrials
• Expansion
• China
• Logistics
• CDH Investments Management
• CITIC Capital
• Legend Capital