A subsidiary company of JD.com has agreed to purchase a controlling stake in China Logistics Property Holdings, valuing the business at around $2.1 billion. JD Property, the Chinese e-commerce giant’s infrastructure management unit, will buy the 26% stake in the company currently held by the China Logistics Chairman, Li Shifa, reports Caixin.
The deal reflects increasing competition to dominate e-commerce in China, with assets like warehouses in high demand from enterprises vying to capitalize on the rising prosperity of the country’s consumers.
RRJ Capital, Joy Orient Investments and Anbang Investment Holdings gave irrevocable offerings for their own shares and convertible bonds. The buyer will be required to launch a mandatory tender offer for China Logistics. Assuming that all the bonds are converted and the offer is accepted in full, the maximum price of the acquisition is about $2.1 billion.
The proposed offer price represents a premium of about 7% over the company’s closing price Wednesday of $0.52 per share.