JD.com, SF, Carlyle among bidders for CJ Group's $1bln China logistics business-sources

CJ Logistics

02/12/2020 06:23

By Kane Wu
    HONG KONG, Dec 2 (Reuters) - Chinese online retailer JD.com
 9618.HK , delivery company SF Group and Carlyle are bidding for
South Korean conglomerate CJ Group's China logistics business in
a deal that could fetch over $1 billion, people familiar with
the matter said.
    CJ Group has hired Morgan Stanley  MS.N  to run the sale of
Shanghai-based CJ Rokin Logistics Supply Chain Co, which it
acquired in 2015 via CJ Logistics Corp  000120.KS .
    It comes as e-commerce in China has boomed during the
coronavirus pandemic, benefiting the logistics sector. China's
economy has also seen a steady recovery from the COVID-19 shock.
    First-round bidders also include real estate and technology
companies as well as other financial sponsors and industry
peers, said the sources, declining to be named due to
confidentiality restraints.
    The deal could value CJ Rokin at over 7 billion yuan ($1.1
billion), with final bids due in January, two of the sources
said.
    A CJ Logistics spokesman declined to comment, as did Morgan
Stanley and Carlyle  CG.O . CJ Rokin could not be reached for
comment. JD.com  JD.O  and SF did not respond to requests for
comment.
    The total value of goods transported via the logistics
sector rose 2% year-on-year to 202.5 trillion yuan in the first
nine months of 2020, according to data from China Federation of
Logistics & Purchasing.
    Mergers and acquisitions in China's logistics sector have
jumped 53% year-on-year to $2.3 billion this year, according to
Refinitiv data.
    Established by brothers Zhang Yurong and Zhang Yuqing in
1997, CJ Rokin specializes in cold chain and chemical products
transportation, according to its website.
    Cold chain storage and transportation have become
increasingly important during the COVID-19 pandemic, which has
killed over 1 million people, as the promising Pfizer vaccine
for example is required to be stored at temperatures of minus 70
degrees Celsius (-94 F) or below.  urn:newsml:reuters.com:*:nL1N2HY06Y urn:newsml:reuters.com:*:nL4N2HY4C8

 (Reporting by Kane Wu in Hong Kong; additional reporting by
Joyce Lee in Seoul, Josh Horwitz in Shanghai and Donny Kwok in
Hong Kong; Editing by Ana Nicolaci da Costa)
 ((kane.wu@thomsonreuters.com; +85228436590; Reuters Messaging:
kane.wu.thomsonreuters.com@reuters.net))