BEST Inc. (BEST) stock prices were down by 7.46% as of the market closing on October 28th 2021. This brought the price per share down to USD$2.11. Subsequent premarket fluctuations have seen the stock rise by 15.1659%, bringing it up to USD$2.43.
Transaction with J&T Express
October 29th 2021 saw BEST stock announce having agreed to sell its express delivery business in China. The buyer is J&T Express Co., Ltd., a PRV LLC that serves as a logistics services provider in China. The transaction has an enterprise value of roughly USD$1.1 billion and will not include any of the company’s other business. As such, Supply Chain Management, Freight, Ucargo, and Global will all remain under the company’s management.
Details of BEST Stock’s Sale
As per the definitive agreement reached by both parties, the consideration to be paid for the business is subject to certain adjustments and conditions. At the current moment, the company anticipates receiving roughly USD$0.06 billion in cash. The transaction is subject to certain closing conditions and applicable regulatory approvals, with an anticipated closing date in the first quarter of fiscal 2022.
Building on Success
BEST stock is keen to make good on its mission statement of empowering businesses and enriching society with a smarter and more efficient supply chain. Accordingly, the company has made significant headway by leveraging its technologies and further innovating business models. As a result of the ongoing impact of the coronavirus pandemic and evolving industry dynamics, the company is confident that the transaction will be highly lucrative. The transaction will allow the company to capitalize on its strengths by allocating resources towards supply chain=based logistics solutions. the company will facilitate the provision of an integrated supply chain, as well as freight and global logistics services to its customers.
Scope of BEST Stock’s Transaction
Concurrently, BEST stock is confident that the transaction will enhance its balance sheet and lead the way to increased profitability. As the company continues to hone its product portfolio and consolidate resources around its core competencies, it is keen to improve customer service and satisfaction, while enhancing employee career development opportunities.
Future Outlook for BEST Stock
The company is poised to capitalize on the expansive scope of opportunities generated by the sale of its express delivery system. BEST stock is keen to maintain the momentum it has generated through to the end of the fiscal year and beyond. Current and potential investors are hopeful that management will be able to effectively leverage the resources at their disposal. This is hoped to facilitate consistent and organic increases in shareholder value over the long term.