Approval of BEST Inc.'s Merger: A Strategic Move for Growth in Supply Chain Solutions

BEST Inc. Secures Shareholders' Support for Merger Agreement

On February 18, 2025, BEST Inc. (NYSE: BEST), a prominent logistics and supply chain solutions provider in China and Southeast Asia, announced that its shareholders gave the go-ahead for a major merger agreement during an extraordinary general meeting (EGM). This agreement, first unveiled on June 19, 2024, marks a significant milestone in the company's growth and operational strategy.

During the EGM, a substantial 62% of BEST's total outstanding ordinary shares participated in the voting process, totaling around 95% of the outstanding votes. The shareholders voted overwhelmingly in favor of the merger, with more than 99% approving the proposal as mandated by the Companies Act of the Cayman Islands. The merger involves BEST Global Partners and its wholly-owned subsidiary, Phoenix Global Partners. This strategic move will elevate BEST into a wholly-owned subsidiary of Parent, following the merger's completion.

The decision comes as BEST aims to streamline its operations and leverage technology to enhance its supply chain offerings further. By merging, BEST is positioned to adopt a private company status, thus delisting its American depositary shares (ADSs) from trading on any securities exchange, including the New York Stock Exchange.

Background of the Merger

BEST's ascent as a leading provider of integrated smart supply chain solutions can be attributed to its innovative use of technology and extensive logistics network. The company offers a broad spectrum of services encompassing freight delivery, supply chain management, and global logistics, all designed to improve efficiency and customer service.

The merger is seen as a critical step towards aggregating resources and capabilities, which could enable BEST to scale its operations and improve service offerings. Furthermore, this merger is expected to address the growing demands in the logistics sector, particularly amid the evolving landscape of global trade and e-commerce.

Shareholder Approval Breakdown

The EGM saw a diverse group of shareholders casting votes, demonstrating a robust commitment to the company's future. Each class of shares held different voting power, whereby class A shares conferred one vote each, class B shares afforded 15 votes, and class C shares allowed 30 votes each. This shareholder structure enabled the company to achieve wide-ranging support for the proposed merger, paving the way for its successful execution.

Next Steps for BEST

Moving forward, BEST Inc. will focus on fulfilling the requisite conditions outlined in the merger agreement. This process holds significance as it will ensure the swift and smooth execution of the merger. Following the completion of these prerequisites, BEST is anticipated to forge ahead towards a more streamlined framework, allowing for better coordination of logistics and supply chain management services across the region.

As BEST continues to evolve, stakeholders remain optimistic about how this merger will amplify the company’s mission to enhance business efficiency and enrich consumer experiences through innovative logistics solutions. The company's commitment to leveraging cutting-edge technology places it in a favorable position as it gears up for the upcoming changes in the operational structure.

For more information, visit BEST Inc.'s website.

This merger stands as a testament to BEST's ambition to lead the logistics industry by turning forward-looking statements into reality, paving the way to enhanced operational efficiencies and innovative service delivery. With the ever-changing dynamics of the logistics sector, this merger positions BEST Inc. as a formidable player ready to tackle future challenges effectively.