BEST Inc. Completes Merger with Phoenix Global Partners, Going Private

BEST Inc. Completes Transition to Private Company

BEST Inc., a prominent player in integrated smart supply chain solutions and logistics services across China and Southeast Asia, has announced the successful completion of its merger with Phoenix Global Partners. This significant shift, which formally resulted in BEST becoming a wholly owned subsidiary of Phoenix Global, marks a pivotal moment in the company’s evolution, moving from a publicly traded entity to a private company.

Overview of the Merger

The merger was finalized shortly after receiving the green light from BEST’s shareholders during an extraordinary general meeting held on February 18, 2025. This agreement and plan of merger, first disclosed on June 19, 2024, has reshaped the corporate structure significantly.

Upon execution of the merger, all American Depository Shares (ADS) of BEST, each representing twenty Class A shares, have been canceled. Shareholders will receive $2.88 in cash for each ADS, while other relevant shares will be compensated at $0.144 each. Notably, this shift cancels certain classes of shares as defined in the merger agreement, paving the way for a streamlined private operation.

What It Means for Shareholders

Registered shareholders are advised to expect a letter with instructions detailing how to exchange their shares for the agreed consideration. This process underscores BEST's commitment to a seamless transition for its shareholders. Moreover, trading of ADS on the New York Stock Exchange (NYSE) will be suspended as of March 10, 2025, further solidifying BEST's status as a private company.

Strategic Rationale Behind the Move

The merger with Phoenix Global Partners not only consolidates BEST's operational capabilities but also positions it more strategically within the logistics industry. BEST aims to leverage enhanced resources and a more focused business model in a competitive marketplace. By integrating resources with Phoenix Global, BEST is set to streamline operations and improve service delivery.

Transition Process

Following the merger, BEST plans to suspend its compliance obligations under the Securities Exchange Act, allowing it greater flexibility to operate without the reporting constraints faced by public companies. This transition includes filing Form 15 with the Securities and Exchange Commission (SEC) within ten days, enabling the suspension of its reporting requirements.

Various legal and financial advisors have participated in this process, underscoring the complex nature of the transaction. Notable advisors included Kroll, LLC as the financial advisor to the Special Committee and Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel for the U.S. side of operations.

Looking Forward

Moving forward, BEST Inc. is poised to focus on refining its logistics services and enhancing its technology platform to deliver superior smart supply chain solutions. The company's vision remains clear as they aim to empower businesses and enrich lives through innovative logistics solutions.

For more information about BEST Inc.'s operations or to stay updated with their latest news, visit their official website. As they embark on this new chapter, stakeholders will be keenly interested in how BEST navigates the private sector landscape and continues to impact the logistics industry.

Conclusion

The completion of BEST Inc.'s merger with Phoenix Global Partners signifies a transformative moment that could reshape its operational dynamics. Stakeholders are hopeful that this new phase will bring enhanced value and innovation within the logistics and supply chain industry. In this evolving space, BEST seeks to leverage its capabilities to remain a leader in delivering smart logistics solutions across its operational regions.