JD Subscriber, a subsidiary of JD.com, China’s second-largest e-commerce company, has bought a 10 percent stake in China Logistics Property Holdings (CNLP/Group) for $114.55 million.
Li Shifa, chairman and president of CNLP, said, “as a leading e-commerce and retail company in China, JD is one of the Group’s largest clients. The subscription by JD provides funds for the Group’s development, broadens the shareholders’ base, and is in the interests of the Group and the shareholders as a whole. Subscribing the company’s shares at a premium and promising a lock-up period of six months shows that JD is full of confidence in the company’s prospects. Furthermore, entitled the right to nominate the appointment of one director indicates JD’s resolution to develop coordinately with the Group. JD’s strengths in e-commerce and retail industry will provide a wider platform for the Group’s future development. Entering into the subscription agreement will help the Group’s development in logistics infrastructure, further consolidate advantageous leading position in the market, as well as improve JD’s core competitiveness in logistics supply chain, thus to realize synergetic development.”
CNLP is the second-largest logistics provider in the country. As of December 2017, the company’s logistics facilities portfolio reached 33.37 million square feet, and it had facilities in 27 logistics parks in 14 provinces or municipalities.
As of Dec. 31, JD operated seven fulfillment centers and 486 warehouses across China.
