Alibaba-backed Best Inc said on Friday it would sell its express delivery business in China to J&T Express Co. Ltd. in a deal valued at about 6.8 billion yuan ($1.06 billion).
“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,” Best Chief Executive Johnny Chou said.
The logistics firm estimates it can net about $600 million from the sale which is expected to close in the first quarter of 2022.
Reuters had reported in January New York-listed Best was considering selling itself as part of a strategic review.
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