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Alibaba-backed Best to sell China express delivery business in $1.1 billion deal -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO: The BEST Inc logo can be seen in one of Shanghai’s warehouses, Shanghai China. November 8, 2017. Picture taken November 8, 2017. REUTERS/Brenda Goh

(Reuters) -Alibaba-backed Best Inc said on Friday it would sell its express delivery business in China to J&T Express Co. Ltd in a deal valued at about 6.8 billion yuan ($1.06 billion), including debt, sending its shares up 22% before the bell.

New York’s Best Shares were scheduled to open at $2.58. It was their highest point since February. They rose 3.4% in the past year.

Best claimed that it does not include Freight and Ucargo as well as Supply Chain Management.

Best Chief Executive Johnny Chou stated, “In view of the unexpected ongoing difficulties from COVID-19 as well as evolving industry dynamics,” that this transaction will allow us to better capitalize our strengths and focus on supply chain-based logistic solutions.”

It is estimated that the logistic company will make approximately $600 million on the transaction, which is scheduled to close in 2022’s first quarter.

Reuters reported January 1st that Best had been considering selling as part of a strategy review.

($1 = 6.3964 renminbi)

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