SET Announcements

VGI Global Media Plc (“VGI”; stock code: VGI.BKK), Thailand’s number one Offline-to-Online (“O2O”) solutions provider, and Kerry Express (Thailand) Limited (“Kerry Express”), a leading express delivery service provider with a country-wide network, joined together today to sign the definitive agreements to navigate new growth opportunities and connectivity of an ever-evolving e-Commerce ecosystem.

Leveraged by this strategic partnership, VGI will solidify its establishment within the O2O ecosystem by penetrating deeper into growing digital online marketing in Thailand. It also enables VGI to have physical connectivity to the consumers, with a particular focus on the e-commerce business. VGI will also strengthen its capabilities in tailor-made advertising solutions surrounding Kerry Express’s sophisticated delivery “heat map”, and create new opportunities, such as smart product sampling, via Kerry Express’ extensive delivery routes. The partnership also builds on new forms of transit media using Kerry Express’ thousands of delivery vehicles and service points in Thailand. In the agreement, Kerry Express also accepts to use Rabbit Rewards as an exclusive loyalty program.

On the other hand, Kerry Express will expand its service portfolio riding on the growing O2O demand through the venture with VGI. Through the additional infrastructure provided by the BTS group of companies, Kerry Express will become the only express logistics partner of VGI and BTS Skytrain to officially use BTS Skytrain to carry out its express delivery services and also have the first refusal right to set up service outlets in BTS Skytrain stations for parcels collection and drop-off. Kerry Express targets to further improve its operating efficiency and thereby enhancing service level and strengthening its growth performance across the country.

Nelson Leung, Deputy CEO of VGI, said, “We are very pleased to announce this alliance as it aligns with VGI’s rapidly growing seamless O2O ecosystem. VGI will be able to capture value from the growth of burgeoning industries including e-commerce, while diversifying and increasing dexterity and flexibility to achieve our strategic goals through an expanded advertising, payments and last-mile delivery foundation. While VGI was previously characteristically sensitive to the cyclical of Thailand’s advertising environment, the structured foundation for growth would make VGI more competitive and resilient.”

“We are delighted to partner with VGI and the BTS group of companies,” said Alex Ng, Executive Director of Kerry Express, “Their well-defined position in Thailand and solid infrastructure across the country enable Kerry Express to provide better express delivery solutions. I believe this joint venture will allow us to transverse the dynamic e-commerce and social commerce landscape, further widen our network, deepen our capabilities, increase our competitiveness and strengthen our presence as well as consolidate our leading position in the market.”

In the definitive agreements, VGI will invest [THB 5,9xxx million], equilvalent to a 23% stake in Kerry Express, and the remaining shares will be held by the existing shareholders of Kerry Express.

From left, Mr. Ellis Cheng, Chief Financial Officer of Kerry Logistics Network, Mr. Alex Ng, Executive Director of Kerry Express, Mr. William Ma, Group Managing Director of Kerry Logistics Network, Mr. Keeree Kanjanapas, Chairman of BTS Group Holdings, Mr. Kavin Kanjanapas, Chairman of the Executive Committee of VGI Global Media and Mr. Nelson Leung, Deputy CEO of VGI Global Media celebrate the signing today.