By Tracy Qu
JD Logistics is paying nearly $560 million to acquire shares it doesn't already own in Deppon Logistics and take the company private, a move aimed at strengthening its market position and driving business growth.
The logistics arm of Chinese e-commerce giant JD.com plans to buy the remaining Deppon shares at 19 yuan each, for a total transaction value of 3.9 billion yuan, equivalent to $558.9 million, according to a Hong Kong exchange filing late Tuesday.
The cash offer represents a 35% premium to the Chinese courier company's closing price on Friday.
The move will help JD Logistics "further integrate the logistics networks and explore more synergies...to consolidate the industry-leading position in freight delivery of the group," the company said.
JD Logistics said Deppon will cease to be a public company after its withdrawal from the Shanghai Stock Exchange.
China's logistics sector has grown rapidly over the past two decades, thanks to strong economic growth and an e-commerce boom. Leading online retailers like JD.com and Alibaba Group have invested heavily in the logistics industry as part of the e-commerce ecosystem.
Shares of Deppon Logistics rose by the 10% daily limit to 15.4 yuan on Wednesday. Hong Kong-listed JD Logistics was down by less than 1% at midday.
The JD.com subsidiary acquired Deppon in 2022. It is Deppon's actual controller and owns about an 80% stake in the courier, the filing showed.
Write to Tracy Qu at tracy.qu@wsj.com
(END) Dow Jones Newswires
01-13-26 2345ET
