Deppon shares or privatization delisting: JD Logistics plans to acquire 66.49% shares of 8.976 billion yuan


On March 13, JINGdong Logistics (2618.HK) released a notice to further disclose the progress of the transaction with Deppon.According to the announcement, JD Logistics will acquire 66.49 percent of Deppon Logistics Co LTD (603056.SH) for 8.976 billion yuan.The two sides will carry out in-depth cooperation in express delivery, cross-border transportation, warehousing and supply chain.Sources revealed that after the cooperation, both sides will continue to maintain the brand and team independent operation, the overall strategy and business direction remains unchanged.The two sides will conduct in-depth cooperation based on their respective strengths.According to jd Logistics’ announcement, JD Logistics, through its indirect wholly-owned subsidiaries, has entered into a series of agreements with deppon’s shareholders for the proposed acquisition of approximately 99.99% of deppon’s shares for a total consideration of approximately RMB 8.976 billion, and Deppon holds approximately 66.50% of the issued share capital of Deppon’s shares.As Deppon shares are listed on the Shanghai Stock Exchange, jd Logistics will make a mandatory general offer for all the offer shares of Deppon shares at an offer price of 13.15 yuan per offer share of Deppon shares, subject to the conditions set out in the agreement and completion of the relevant transactions, the notice said.Jd.com also noted that the transaction is subject to risks and uncertainties, and the acquisition is subject to the completion or waiver of certain conditions precedent, which may not happen.The offer may be made subject to the approval of the relevant authorities and the completion of the relevant transaction and, if made, may not be successful.According to redstar Capital Bureau, previously on March 11, Deppon Logistics announced that JINGdong Logistics would acquire 66.49% of deppon shares.To be specific, JD Zhuofeng, a wholly-owned subsidiary of JD Logistics, was granted 99.99% of deppon Holdings’ shares and indirectly controlled the 66.5% of Deppon Holdings’ shares.If the transaction is implemented smoothly, Cui Weixing, chairman and General manager of Deppon Express, will no longer be the actual controller of Deppon shares, and JINGdong Zhuofeng Enterprise Management Co., Ltd. will become the indirect controlling shareholder of the company.According to the earnings report, JD logistics’ total revenue reached 104.7 billion yuan in 2021, including 71.1 billion yuan from integrated supply chain customers and 33.6 billion yuan from other customers, including express delivery.As of December 31, 2021, JD Logistics has more than 1,300 warehouses and more than 300,000 front-line employees across the country, and has achieved same-day and next-day delivery in 93% of districts and counties and 84% of townships.Deppon Logistics is a comprehensive logistics provider integrating express delivery, logistics, cross-border logistics, warehousing and supply chain.According to deppon’s report for the third quarter of 2021, the revenue from express transportation accounted for about 97% of the total revenue, reaching 21.861 billion yuan.As of June 30, 2021, Deppon Logistics has more than 30,000 outlets, 140 warehouses and more than 2,000 main routes in China.After the opening on March 14, Deppon’s shares rose by the daily limit to 13.93 yuan per share, basically equal to the offer price of JD Logistics. The company’s total market value is about 14.306 billion yuan.

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