JD Logistics (2618) planned to delist its consolidated subsidiary Deppon from the Shanghai Stock Exchange, buying the remaining nearly 20 percent shares of it.
The company's wholly owned arm Jingdong Zhuofeng proposed to acquire 19.99 percent of Deppon's shares for 3.79 billion yuan (HK$4.24 billion) after obtaining the approval of Deppon's shareholders for the withdrawal, according to an exchange filing.
Its offer price is at 19 yuan per share, representing a 31.9 percent higher from the closing price before Deppon halted trading last week. JD Logistics now holds approximately 80.01 percent of the total Deppon shares.
The firm said the acquisition enables it to further integrate the logistics networks and explore more synergies between Deppon and the company, in order to consolidate the industry leading position in freight delivery of JD Logistics.
The transaction also enabled JD Logistics to better integrate its resources, reduce costs and improve the management and operational efficiency, which will in turn, lead to stronger market competitiveness, the company said.
