Best To Sell Delivery Unit

Best Inc ($BEST@China)—the supply chain firm famously backed by Alibaba ($BABA@China)—plans to sell its express delivery unit to J&T Express Co Ltd for around $1.06 billion. As part of the sale, Best does not plan to sell off its Supply Chain Management, Freight, Cargo, and Global businesses. Best CEO Johnny Chou said, “In light of the unexpected ongoing challenges from COVID-19 and evolving industry dynamics, we believe this transaction allows us to better capitalize on our strengths by focusing on supply chain-based logistics solutions.” The firm believes that it will see about $600 million from the sale after settling debts, closing in the first quarter of 2022. The move stands in stark contrast to a report from earlier in the year when the firm considered selling itself as a whole during a strategic review. As the news broke, Best shares jumped 22% in early activity. Alibaba stock rose around a third of a percent as the news broke. Plus, J&T Express is planning an IPO for 2022.