JD.com to buy courier company Deppon Logistics in $1.4B deal
JD.com (NASDAQ:JD) says its JD Logistics subsidiary agrees to acquire Chinese logistics firm Deppon Logistics for ~9B yuan ($1.42B) in an effort to boost its network infrastructure in the country.
Under the deal terms, JD Logistics will acquire a 99.99% equity stake in Deppon Holdco, which owns a ~66.5% of Deppon Logistics, and then will launch a mandatory general offer for all of Deppon shares at 13.15 yuan/share.
JD.com describes Deppon as "an integrated, customer-centered logistics company providing a wide range of solutions including less than truckload transportation, full truckload transportation, delivery services and warehousing management in China."
According to Bloomberg, Dappon's services include more than 30K service stations across China, 143 transfer centers with more than 1.8M square meters, and more than 15K vehicles.
JD.com shares tumbled last Friday to a nearly two-year intraday low $47.85 and have lost 31% YTD.