JWD Increases/Acquires Stakes in PPSEZ, Bok Seng to Expand Presence in Cambodia, Logistics Operations in Phnom Penh

BackJun 12, 2018

Recognising Cambodia's high growth potential, the leading ‘Total Logistics Solutions Provider’ JWD has made fresh moves to expand its investment in Cambodia, increasing its equity stake in the Cambodian industrial estate developer PPSEZ to 14.61% from 5.18% in order to facilitate the implementation of the plan offer enhanced services to customers at industrial estates, and acquiring a 40% stake in Bok Seng to secure the right to operate ICD, warehousing and transport businesses in Phnom Penh Special Economic Zone.

Mr. Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer (CEO) of JWD InfoLogistics Public Company Limited (JWD), a leading ‘Total Logistics Solutions Provider’, revealed that, as part of its efforts to grow regionally, JWD has invested a total of THB 315.73m for the expansion of its logistics operations in Cambodia. This includes an approx. THB 169.16m (or approx. USD 5.27m) sum expended for acquiring more shares in Phnom Penh SEZ Plc. (PPSEZ), a local listed firm that operates industrial estate development business, through Finansia Syrus Securities PCL (its authorised brokers), thereby raising its stake in the firm from 5.18% to 14.61% of the authorised and paid-up capital and facilitating the implementation of the plan to offer enhanced services to customers at industrial estates.

JWD has also had JWD Asia Holding Private Ltd. (JWDAH), its indirect 99%-owned subsidiary, invest a sum of approx. THB 146.57m, (or approx. USD 4.57m) to buy a 40% stake in Bok Seng PPSEZ Dry Co., Ltd (Bok Seng), a local listed firm that operates inland container depot (ICD), warehousing and cargo transport businesses within Phnom Penh Special Economic Zone.

JWD decided to invest in PPSEZ and Bok Seng to pave the way for its operation of ICD, warehousing and cargo transport facilities within Phnom Penh Special Economic Zone and to use Bok Seng's more than 30,000sq m vacant plot for the development and improvement to increase the volume of its logistics and connected activities, using its nearly four decades' experience and expertise in logistics operations to grow its businesses in the country according to plans. Its investment in PPSEZ will also allow both of them to enhance their presence in the country in the future.

"We decided to invest in general warehousing and cold storage projects in Cambodia in late 2016, viewing the country as offering high growth potential. Posting 6-7% annual economic growths for the past few years, it has attracted a large number of foreign firms that build manufacturing factories and invest. This has accelerated the development of industrial estates and increased the demand for logistics services, especially from professional logistics firms", said he.