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JD Logistics Buys 66.5% of China’s Deppon for $1.4 Billion

  • JD Logistics to buy firm that holds 66.5% of Deppon Logistics
  • JD.com unit to make offer for all Deppon at 13.15 yuan a share
JD.com Inc.'s Asia No. 1 Shanghai Jading Logistics Park facility in Shanghai, China

JD.com Inc.'s Asia No. 1 Shanghai Jading Logistics Park facility in Shanghai, China

Photographer: Qilai Shen/Bloomberg

JD Logistics Inc. plans to buy Chinese logistics firm Deppon Logistics Co. as the delivery arm of China e-commerce giant JD.com seeks to boost its network infrastructure in the world’s second-largest economy.

JD Logistics agreed to pay about 9 billion yuan ($1.42 billion) for Deppon Holdco, an investment vehicle that holds about 66.5% in Shanghai-listed Deppon Logistics, according to a statement to Hong Kong stock exchange on Sunday. As part of the deal, JD Logistics will launch mandatory general offer for all of Deppon shares at 13.15 yuan a piece, a 3.9% premium to the latest closing price, as required under Chinese rules.