China's JD Logistics agrees to buy rival Deppon, shares down

JD Logistics

14/03/2022 10:33

** U.S.-listed shares of Chinese e-commerce giant JD.com Inc
 JD.O  down 6.2% at $45.02 premarket 
    ** Co said on Sunday its Hong Kong-listed logistics arm JD
Logistics Inc  2618.HK  has agreed to buy courier firm Deppon
Logistics Co Ltd  603056.SS   urn:newsml:reuters.com:*:nL2N2VG07B
    ** U.S.-listed shares of other Chinese firms like Didi
 DIDI.O , Alibaba  BABA.N , Tencent Music  TME.N , Bilibili
 BILI.O , Pinduoduo  PDD.O  also fall premarket amid worries
that rising COVID-19 cases in China could lead to a lockdown,
coupled with fresh regulatory action from Beijing 
    ** Under the deal, JD Logistics will acquire 99.99% equity
stake in Deppon Holdco for a total consideration of about 9 bln
yuan ($1.42 bln)
    ** Deppon Holdco owns a total of about 66.50% of Deppon
Logistics 
    ** JD Logistics will also make an offer for all the issued
shares of Deppon Logistics not held by Deppon Holdco, for 13.15
yuan per share
    ** Through the buyout JD Logistics will look to beef up its
logistics and supply chain business, a foundational service for
China's e-commerce market
    ** JD shares have lost 31.5% so far this year

($1 = 6.3585 Chinese yuan renminbi)

 (Reporting by Eva Mathews in Bengaluru)
 ((Eva.Mathews@thomsonreuters.com;))