Shulou(Shulou.com)11/24 Report--

CTOnews.com November 8 news, the New York Stock Exchange listed company Best Group issued an announcement on November 6, the company's board of directors received a preliminary non-binding privatization proposal. The proposal comes from Zhou Shaoning, founder, chairman and CEO of Best Group, Zhou Shaojian, the company's chief strategy and investment officer, and a number of Best Group shareholders, including Alibaba and Cainiao.

The privatization proposal once caused market speculation: Alibaba and Cainiao want to buy Best?

CTOnews.com learned from people familiar with the matter that the speculation was a big one. The reality is that Best intends to delist from the New York Stock Exchange through privatization, which is a routine move for major shareholders to cooperate with delisting. Ali and Cainiao do not intend to take over.

Best Group was founded in 2007 and has experienced many major adjustments and changes in the fierce competition in the express logistics market. Among them, in October 2021, Best Group's domestic express business in China was acquired by Polar Rabbit Express for about 6.8 billion yuan. Since then, Best Group has mainly focused on supply chain, express and international business.

But Best's market capitalization has been depressed for a long time, with a market capitalization of about $52 million on October 7. According to NYSE standards, a total market capitalization of less than $50 million for 30 consecutive days could trigger a non-compliance notice and face delisting pressure.

"under such circumstances, it is expected that Best Group will promote privatization and delisting, and it is not a question of who will buy Best Group at all." The person familiar with the matter said.

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