JD.com said to be in advanced talks to buy controlling stake in China Logistics

FILE PHOTO: A logo of JD.com is seen on a helmet of a delivery man in Beijing, China June 16, 2014. REUTERS/Jason Lee/File Photo Photo by Reuters

Chinese e-commerce giant JD.com Inc is in advanced talks to acquire a controlling stake in storage facilities manager China Logistics Property Holdings Co for an undisclosed sum, Bloomberg News reported on Thursday, citing people familiar with the matter.

China Logistics Chairman Li Shifa and private equity firm RRJ Capital have put more than 50% of the firm up for sale, seeking a valuation of about $2 billion, according to the report.

Shares of China Logistics surged nearly 14% in Hong Kong trading earlier on Thursday before they were suspended, pending inside information from the company.

The companies have not made a final decision, and talks could still fall apart, according to the report. JD and China Logistics did not immediately respond to Reuters requests for comment.

JD.com has benefited from a spike in online shopping due to the COVID-19 pandemic. Its strategy of holding inventory and having full control of its in-house delivery network has also helped it compete with larger rival Alibaba Group, which outsources its logistics operations to third-party firms.

Earlier this week, JD told investors it does not expect any business impact from a wave of regulations hitting the Chinese industry, after beating analysts’ expectations for the quarter through June.

Reuters

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Singapore Reporter/s

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).

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

  • 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.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.