(Yicai Global) May 11 -- Shares in Bondex Supply Chain Management surged as much as 8.7 percent today after the Chinese logistics service provider said that it is preparing to buy a majority stake in HapTrans Holdings, Canada’s third-largest fresh produce air freight agency, to expand its footprint in the North American market.

Bondex’s share price [SHA:603836] was trading up 3.12 percent at CNY19.48 (USD3) as of 2 p.m. China time today. Earlier in the day it had hit CNY20.55.

Bondex’s Hong Kong subsidiary will pay CAD27.7 million (USD21.3 million) in cash for a 75 percent stake in HapTrans, the Qingdao, eastern Shandong province-based company said yesterday. The equity being purchased is held by three entities, namely Zheng Zhongbo, one of her companies and the Zheng Family Trust. HapTrans’ other stakeholders and their shareholding ratios were not disclosed.

The acquisition will not affect HapTrans’ main business, long-term operations nor assets, it said. The Canadian company’s finances are in a good state, it added, although as of Jan. 31 this year, the firm’s liabilities exceeded its assets by CAD4.9 million (USD3.7 million).

HapTrans runs a fresh produce air freight forwarding business and delivers live seafood to the Chinese market using personalized solutions for customers. The Vancouver-based company also operates a road haulage network that covers North America. It has outlets and warehouses in Vancouver, Toronto, Montreal and Halifax. The firm logged net profit of CAD6.2 million (USD4.8 million) last year on revenue of CAD41.2 million (USD31.6 million).

Bondex offers ocean shipping, road trucking, railway delivery, air forwarding, customs clearance as well as warehousing services, according to its website. It provides one-stop logistics services for cars, exhibitions, cross-border e-commerce and other business sectors.

Editor: Kim Taylor