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Business unit makes US$513 million controlling bid in China Logistics unit makes US$513 million controlling bid in China Logistics

FILE PHOTO: A sign of is seen at the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai, China July 30, 2021. REUTERS/Aly Song

Chinese e-commerce giant Inc's real estate unit has made an about HKUS$3.99 billion (US$513.45 million) offer to buy a controlling stake in storage facilities manager China Logistics Property Holdings, the companies said in a joint exchange filing on Friday.

JD Property Group offered to buy a 26.38per cent stake in China Logistics for HKUS$4.35 per share from its top shareholder, Yupei International Investment Management.

That would take's stake in China Logistics to about 35.8per cent, making it mandatory under the Hong Kong takeover code for the e-commerce giant to make a general offer for the whole company.

The offer price of HKUS$4.35 apiece represents a 7.4per cent premium to China Logistics' last close of HKUS$4.05 on Wednesday.

China Logistics shares were halted on Thursday, pending the announcement. It has applied to the stock exchange to resume trading in its shares from Monday.

Last week, Bloomberg News reported that the Chinese e-commerce giant was in advanced talks to buy a controlling stake in China Logistics, citing people familiar with the matter.

(US$1 = 7.7710 Hong Kong dollars)

(Reporting by Sameer Manekar in Bengaluru, Editing by Sherry Jacob-Phillips and Rashmi Aich)

Source: Reuters


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