BEST To Sell Express Business In China

BEST Inc BEST has agreed to sell its express delivery business in China to J&T Express Co., Ltd., a PRC limited liability company and a logistics services provider, at ~RMB6.8 billion ($1.1 billion) enterprise value.
BEST currently expects to receive ~RMB3.9 billion ($0.6 billion) for the express delivery business in cash and close the sale in the first quarter of 2022.
The sale does not include any of BEST's other businesses, namely, Supply Chain Management, Freight, Ucargo, and Global.
"In light of the unexpected ongoing challenges from COVID-19 and evolving industry dynamics, we believe this transaction allows us to better capitalize on our strengths by focusing on supply chain-based logistics solutions and providing integrated supply chain, freight, and global logistics services to our customers. At the same time, it will enhance our balance sheet and provide a better pathway to profitability," commented CEO Johnny Chou.
Price Action: BEST shares are trading higher by 10.9% at $2.34 during the premarket session on Friday.