- The stock price of BEST Inc (NYSE: BEST) is trading at over 20% pre-market today. This is why it happened.
The stock price of BEST Inc (NYSE: BEST) — a China-based logistics company that has Alibaba as its largest shareholder — is trading at over 20% pre-market today. One of the biggest reasons why it happened is due to the company considering a sale in a strategic review. Reuters noted that it has six sources that have knowledge of the matter.
Reuters’ sources said that Best already tapped financial advisers to explore options as the company’s shares have been underperforming. And it has been trading at a fifth of its IPO price in 2018.
Alibaba owns about 33% of Best and Best founder and CEO Johnny Chou has an 11% stake on a fully diluted basis. Alibaba and Chou could end up selling their stakes in the company as part of a deal.
It’s worth mentioning that a formal sales process has not been launched yet. But it sounds like there are offers for a sale on the table. And another option for Best is to sell its finance leasing business.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.