Saturday, Nov 28, 2020
International Finance
Logistics

JD Logistics to acquire controlling stake in Kuayue Express for $432 mn

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Reports suggest JD Logistics has already signed an agreement

JD Logistics, the logistics arm of Chinese ecommerce giant JD.com is set to acquire a controlling stake in another China-based logistics company Kuayue Express for around $432 million.

According to reports in the media, JD Logistics has already signed an agreement with Kuayue Express.

JD Logistics revealed in a filing with the Hong Kong Stock Exchange that it wil acquire existing shares and also subscribe to newly-issued shares of Kuayue Express.

The transaction is expected to be completed in the third quarter of 2020.

Wang Zhenhui, chief executive officer of JD Logistics said in a statement attached to the exchange filing, “Kuayue Express is a reliable delivery services provider and industry leader in express courier services with innovative technology and advanced operations. Collaborating with Kuayue Express advances our integrated supply chain management, technology initiatives, and service expansion to third-party merchants.”

Earlier this month, JD.com announced that it will invest $100 million in Hing Kong-based supply chain manager and logistics company Li & Fung.

According to reports in the media, JD.com and Li & Fung will work together to accelerate the development of digital supply chain.

JD.com has subscribed for $100 million worth of Li & Fung’s newly issued shares at HK$1.25 each, the Hong Kong-based supply chain manager said in a statement.

Reportedly, the Fung family will retain 60 percent voting rights in the company. The deal is also expected to help the company increase its footprint in China.

Earlier this year, Li & Fung, which is one of the world’s oldest supply chain manager, delisted from the Hong Kong stock exchange following a privatisation by a consortium of investors, led by the Fung family and Singapore logistics assets investor GLP.

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