BRIEF: JD Logistics to privatize Shanghai-listed Debon unit

2618.HK

JD Logistics Inc. (2618.HK) said on Tuesday it plans to privatize its Debon Logistics Co. Ltd. (603056.SH) unit from the Shanghai Stock Exchange by purchasing the remaining 20% of the company it doesn’t already own for 19 yuan per share.

According to JD Logistics’ announcement, Debon’s board has approved the deal, which is subject to shareholder approval. The cash offer of 19 yuan per share represents a premium of 35.33% to Debon’s last trading price before its shares were suspended, valuing the deal at about 3.8 billion yuan ($544 million). JD Logistics currently holds about 80% of Debon’s shares.

Debon focuses on the large-parcel logistics segment. JD Logistics said the transaction will help it better integrate resources, reduce costs and improve management and operational efficiency.

The move follows a similar step last year, when JD Logistics parent, JD.com, privatized Dada Nexus, another majority-owned logistics and delivery asset, from the Nasdaq and later transferred its assets to JD Logistics.

JD Logistics shares opened lower on Wednesday, closing at HK$11.72 by the midday break, down 0.85%.

By Lee Shih Ta

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