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China Logistics says top shareholder in talks to sell controlling stake

Published 08/26/2021, 06:17 AM
Updated 08/26/2021, 12:26 PM
© Reuters. FILE PHOTO: A sign of JD.com is seen at the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai, China July 30, 2021. Picture taken July 30, 2021. REUTERS/Aly Song

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

(Reuters) -China Logistics Property Holdings Co said on Thursday its top shareholder was in talks to sell its controlling stake in the company to an undisclosed buyer, which could result in a takeover offer for the storage facilities manager.

Earlier in the day, Bloomberg News reported that Chinese e-commerce giant JD (NASDAQ:JD).com Inc was in advanced discussions to acquire a controlling stake in China Logistics, citing people familiar with the matter.

JD.com, which has an about 9.4% stake in China Logistics, did not respond to a Reuters request for comment.

A Hong Kong takeover code requires that an organisation with more than 30% shareholding must make a general offer for the whole company.

China Logistics said its chairman, Li Shifa, who holds a 26.38% stake in the company through his Yupei International Investment Management, had been in talks with a potential suitor.

That stake would be equivalent to 916.5 million shares and worth about HK$3.40 billion ($436.65 million), based on Wednesday's closing price.

The company said no final decision had been made and talks could still fall through.

Shares of China Logistics surged nearly 14% in Hong Kong on Thursday before trading in the stock was suspended, pending more information from the company.

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

China Logistics said it had requested the bourse to resume trading from Friday morning.

($1 = 7.7865 Hong Kong dollars)

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