China’s Sinotrans to buy stake in local courier for 360 mln yuan
Sinotrans Air Transportation Development Co Ltd (SHA 600270) is expected to acquire a controlling 51 pct stake in Shanghai STO Express Co Ltd for 360 mln yuan, The Economic Observer reported.
The newspaper cited unnamed sources as saying that the two companies have signed an agreement which is pending approval by the State-owned Assets Supervision and Administration Commission.
Officials at both companies declined to comment.
STO Express, with 430 offices around the country, had sales of over one bln yuan in 2004, the newspaper said, without providing comparative figures.
Sinotrans Air, a subsidiary of Sinotrans Ltd (HK 0598), launched its own express service in December last year after its parent ended its partnerships with Fedex, TNT and UPS in recent years.
Foreign express service providers will be allowed full access to China’s domestic market beginning next month in-line with its WTO commitments.
(1 usd = 8.1 yuan)
