China’s second-largest online retailer JD.com has acquired 10% of Hong Kong Stock Exchange-listed China Logistics Property Holdings (CNLP) for HK$899 million (US$114.52 million), according to CNLP’s security filing.
CNLP said JD.COM will acquire 321,068,999 shares, or about 10% of the company, at the price of HK$2.8 per share. The price represents a 5.66% premium over the closing price of HK$2.65 on the date of the agreement.
Founded in 2000, CNLP’s business covers design, development, leasing and management of logistics warehouses, with a customer base consisting of manufacturing, retail and the logistics service sector. As of June 2017, CNLP has developed 60 logistics parks with total gross floor area of more than 5,800,000-square meters in 42 cities across China.
CNLP said the investment by JD.com will help facilitate site selection and network establishment, ensure a high occupancy rate, and improve gearing ratio and liquidity. After the transaction, JD.com will have the right to nominate one candidate for appointment to CNLP’s board as a non-executive Director.
In February, JD.com announced a US$2.5 billion funding round for its logistics subsidiary, JD Logistics. That funding valued the company at around US$13.5 billion ahead of an anticipated initial public offering later this year. In January, JD Logistics led a RMB150 million (US$23 million) financing round in truck logistics firm Fuyoukache.