ZTO EXPRESS-W (ASX: 02057) has announced an agreement for its wholly-owned subsidiary to purchase the remaining approximately 36.20% stake in TuXi Tech, a non-wholly-owned subsidiary.

The total consideration for the acquisition of approximately 567.5 million shares is around RMB 13.05 billion.

Upon completion of the transaction, TuXi Tech will become a fully-owned subsidiary of the group, and its financial results will continue to be consolidated.

TuXi Tech primarily operates last-mile station services, and this acquisition is expected to strengthen the group's strategic position in the final-mile delivery sector, enhance overall competitiveness, and improve brand profitability.

The company's board, including independent non-executive directors, believes the transaction is in the ordinary course of business and aligns with the group's strategic initiatives in last-mile delivery, supporting the implementation of its overall business strategy.

Given TuXi Tech's stable operations and track record of profitability, the acquisition is anticipated to bolster the group's performance and increase returns for shareholders.