JD Logistics, the logistics arm of ecommerce giant JD.com, will acquire Deppon Logistics, a China-based courier company, the former announced on Sunday.
As part of the deal, JD Logistics will acquire a 99.99% stake in Deppon Holdco – which owns nearly 66.5% of Deppon Logistics – for roughly 9 billion yuan (US$1.4 billion).
Photo credit: JD.com
JD Logistics will issue a mandatory general offer for all shares of Deppon, which is listed on the Shanghai stock exchange, at 13.15 yuan (US$2) per share.
Founded in 1996, Deppon provides logistics services such as less-than-truckload transportation, full truckload shipping, deliveries, and warehousing management in China.
Following the completion of the deal, Deppon Holdco and its subsidiaries will become a unit under JD Logistics. Its financial results will be published as part of JD Logistics’ consolidated financial statements.
The new deal comes after JD.com reported a net loss of US$800 million in the fourth quarter of 2021 from a net profit of US$3.8 billion a year ago.
For the financial year ended 2021, the ecommerce giant posted a net loss of US$600 million, compared with a net profit of US$7.8 billion in the previous year. JD Logistics, however, saw its quarterly revenue climb 27.7% to US$4.8 billion in the same period.
Currency converted from Chinese yuan to US dollar: US$1 = 6.35 yuan.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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