(Yicai Global) Feb. 10 -- Chinese express delivery giant SF Holding has offered HKD17.6 billion (USD2.3 billion) to take control of Kerry Logistics Network to expand its coverage, pushing the shares of both companies to record highs. 

Shares of SF [SHE: 002352] soared by the daily 10 percent trading limit to CNY117.10 (USD18.20) today, while Kerry Logistics [HKG: 0636] closed 5.5 percent higher at HKD24.75 (USD3.19), after earlier jumping as much as 10.4 percent.

SF will buy a majority 51.8 percent stake in Kerry Logistics via a unit called Flourish Harmony Holdings, the Shenzhen-based company said in a statement yesterday.

The mainland courier will also issue new stock, making up less than 10 percent of its outstanding shares before the issuance, through a private placement with up to 35 investors to raise as much as CNY22 billion (USD3.4 billion), SF added. The proceeds will be used for five projects, including equipment upgrades and to supplement working capital. The deal should be done by June.

Trading of SF’s shares was halted from Feb. 5 after the firm said in a bourse filing that it was preparing a major information disclosure following a Sina report about its plans to take a stake in Hong Kong-based Kerry Logistics.

Listed in 2013, Kerry Logistics has one of the widest distribution networks in China and the Association of Southeast Asian Nations. It will remain listed on the main board of the Hong Kong Stock Exchange after the takeover, SF said.

Editor: Emmi Laine