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JD.com unit makes $513 million controlling bid in China Logistics

JD.com unit makes $513 million controlling bid in China Logistics
JD.com unit makes $513 million controlling bid in China Logistics   -   Copyright  Thomson Reuters 2021
By Reuters

– Chinese e-commerce giant JD.com Inc’s real estate unit has made an about HK$3.99 billion ($513.45 million) offer to buy a controlling stake in storage facilities manager China Logistics Property Holdings, the companies said in a joint exchange filing on Friday.

JD Property Group offered to buy a 26.38% stake in China Logistics for HK$4.35 per share from its top shareholder, Yupei International Investment Management.

That would take JD.com’s stake in China Logistics to about 35.8%, making it mandatory under the Hong Kong takeover code for the e-commerce giant to make a general offer for the whole company.

The offer price of HK$4.35 apiece represents a 7.4% premium to China Logistics’ last close of HK$4.05 on Wednesday.

China Logistics shares were halted on Thursday, pending the announcement. It has applied to the stock exchange to resume trading in its shares from Monday.

Last week, Bloomberg News reported that the Chinese e-commerce giant was in advanced talks to buy a controlling stake in China Logistics, citing people familiar with the matter.

($1 = 7.7710 Hong Kong dollars)