Deepen cooperation: S.F. Holding (002352.SZ) intends to mutually recognize shares with PEdelivery.

S.F. Holding (002352.SZ) announced that its board of directors has approved the proposal on subscribing to the new shares issued by Jitu Express and issuing new H shares to Jitu Express under general authorization. The company has agreed to subscribe to the new B shares of Jitu Express through its overseas wholly-owned subsidiary, and to issue new H shares to Jitu Express or its designated entities under general authorization. The company plans to subscribe to 822 million B shares of Jitu Express through its overseas wholly-owned subsidiary. After the issuance of Jitu shares, the group will hold 972 million B shares of Jitu Express, accounting for 10.00% of the total number of shares issued by Jitu Express after the expansion. The issuance price of Jitu shares is HK$10.10 per share, and the total consideration paid by the group for the issuance of Jitu shares is approximately HK$8.299 billion. At the same time, the company plans to issue 226 million new H shares to Jitu Express or its designated entities on the Hong Kong Stock Exchange under general authorization. As of the announcement date, Jitu Group does not hold any shares of the company. After the completion of the H share issuance, Jitu Group will hold 226 million shares of the company, accounting for approximately 4.29% of the total number of issued shares of the company (including treasury shares) after the expansion. The issuance price of the H shares is HK$36.74 per share. The net proceeds from the H share issuance (after deducting commissions and estimated expenses) are estimated to be approximately HK$8.289 billion. The company plans to use the net proceeds from the H share issuance to pay the consideration due under the issuance of Jitu shares. The announcement stated that this transaction is of strategic importance to the group. In terms of international business, the group will leverage its core resources and mature operating system in cross-border first-mile and trunk routes, synergize with Jitu Group's end-delivery network and local operation experience in Southeast Asia and emerging markets, and expand the network coverage and product competitiveness of end-to-end cross-border business; in terms of domestic business, the two parties have significant complementary synergies in network resources, customer base, product structure, and differentiation, which will help both parties to expand their service boundaries together.