China’s JD.com picks 10% stake in logistics operator for $115m

REUTERS/Jason Lee

China’s second-largest e-commerce firm JD.com has paid HK$898.99 million ($114.55 million) to acquire a 10 per cent stake in Hong Kong-listed China Logistics Property Holdings (CLP), according to a Hong Kong stock exchange filing.

In the disclosure, CLP said JD.com, through its subsidiary JD Subscriber, has agreed to buy 321 million newly issued CLP shares at a price of HKD2.8 per share, representing a 9.42 per cent premium compared to the average closing share price for the ten trading days prior to 27 April.

JD Subscriber’s stock represents 9.90 per cent of CLP’s enlarged issued share capital. Immediately after the completion of the stake acquisition, the shareholding of CLP’s biggest shareholder, Yupei International Management, will drop to 24.29 per cent from 26.95 per cent, according to the filing.

The deal makes JD the third-largest shareholder of CLP, one of the biggest domestic logistic facilities developers and operators. Berkeley Asset Holding Ltd holds a 16.39 per cent share as the second-largest shareholder while Sherlock Asset Holding holds 0.40 per cent.

With the signing of the agreement, JD Subscriber gets the right to nominate one candidate for appointment to CLP’s Board as a non-executive director.

CLP said JD Subscriber and its affiliates are currently among the major tenants of the logistics facilities operated by the group.

“The investment by JD will enable CLP to achieve facilitation in site selection and network establishment, ensure a high occupancy rate, and improve gearing ratio and liquidity,” CLP disclosed.

The subscription of shares will also provide the logistics group with immediate funding, it added. Established in Shanghai in 2000, CLP now runs 60 logistic parks in China’s 42 cities.

On Tuesday, JD.com reported a 33 per cent increase in quarterly revenue, the slowest quarterly revenue growth since listing in the US. It posted Rmb101.1 billion ($15.88 billion) in revenue for the first quarter, higher than analysts’ estimate of Rmb98.9 billion ($15.52 billion).

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
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