Investment/SCGJWD

Editorial team

SCGL & JWD announce merger to combine to strengthen regional business expansion
becoming ASEAN’s largest integrated logistics and supply chain service provider

SCG Logisitcs Management Company Limited (SCGL) and JWD InfoLogistics Public Company Limited (JWD), the two leading logistics and supply chain service providers in ASEAN announced a crucial merger deal to form a “partnership” under the name “SCG JWD Logistics Public Company Limited (SCGJWD)”

In a move to combine and increase the service level capability to become the largest “integrated logistics and supply chains solutions provider” in ASEAN region.

Mr. Charvanin Bundikitsada, chairman of the executive committee and chief executive officer of JWD Pcl. (JWD), said the company has moved ahead to merge with SCG Logistics Management Company Limited (SCGL), which is a subsidiary of Siam Cement Public Company Limited (SCC), following the company’s board of directors’ meeting on October 26, 2022 resolving to propose to the shareholders’ meeting to consider and approve the merger between JWD and SCGL.

In this merger transaction, JWD will issue new ordinary shares to the amount of not more than 791,020,363 million shares and offer them as private placements (PP) to the existing shareholders of SCGL at the price of 24.02 baht per share as compensation for the transfer of all SCGL ordinary shares in a “share swap”.

Following the completion of the share swap, SCGL’s existing shareholders will hold shares in JWD in the proportion of not more than 43.7 % of all JWD’s voting shares after the transaction.

The merger transaction of SCGL and JWD is expected to be completed within Q1/2023.

Upon completion of the merger transaction, JWD will change its name to SCG JWD Logistics Public Company Limited with the SET-registered abbreviation of SJWD for share trading in the Stock Exchange of Thailand.

This merger combines the individual strengths of the two companies perfectly. These include JWD’s expertise in specialized products such as temperature-controlled goods, hazardous goods and automotive, etc., while SCG is the expert in industrial products such as steel & construction materials, paper & packaging, and consumer products.

This synergy will help to increase the capability to provide logistics services from upstream to downstream along with a large variety of service models covering warehousing, supply chain and multimodal logistics, as well as the opportunity to create more synergy in the future. Moreover, the customer bases of both parties do not overlap significantly.
In terms of cost and management, the merger will immediately make SCGJWD the largest integrated logistics and supply chain service provider in ASEAN.

Mr. Bunn Kasemsup, managing director of SCG Logistics Management Co., Ltd., said the merger with JWD is considered to be the combination of expertise of the two leading companies in logistics businesses to further increase the service capability and ramp up the growth of the businesses.

SCGL has the expertise in providing logistics and supply chain services for the industrial groups.

SCGL has businesses in many countries as a result of the business expansion to support the business development of the SCG Group, namely in Vietnam, Indonesia, Cambodia, Lao PDR and the Philippines.

The company is capable of providing cross-border logistics services from Thailand through Lao PDR and Vietnam to China, and barge transport to neighboring countries such as Cambodia and Myanmar.

SCGL has a plan to broaden the rail and air logistics services. Thus, upon the merger with JWD, the company will be able to expand the network of multimodal transport services that will become much more comprehensive, to help optimize cost management and create added value for the business.