JD Logistics has announced that on July 26, it closed a major transaction to acquire equity interest in Deppon. It also announced the completion of transactions related to the acquisition of Deppon’s equity interest, including the completion of the First Tranche Transfer, MVA First Tranche Transfer and Minority Interest Seller Agreement, whereby the relevant sellers transferred in aggregate more than 50% of the equity interest in Deppon to the purchaser. Upon these transactions, Deppon (including Deppon Group) will become a subsidiary of JD Logistics.
Deppon Logistics announced that Suqian JD Zhuofeng Corporate Management Co. can now control Deppon by acquiring shares through transfer and accepting the entrustment of Cui Weixing and Dong Jiangao to obtain the voting rights corresponding to some Deppon shares. Following the completion of the settlement of the subject shares, Cui Weixing is no longer the de facto controller of Deppon Logistics, and Deppon remains the controlling shareholder of the company. JD Zhuofeng, as controlled by JD.com, Inc. will become the indirect controlling shareholder of the company.
In March this year, JD Logistics announced the acquisition of 99.99% of the equity interest of Deppon for 8.976 billion yuan ($1.33 billion), representing approximately 66.49% of Deppon’s issued share capital.
According to tech.sina, Cui Weixing, the chairman of Deppon, made it clear in an internal meeting that the rumored integration, layoffs and mergers would not come true, and that Deppon would maintain independent operation of its brand and team, and he will continue to manage the company.
On completion of the acquisition, the two sides will launch in-depth strategic cooperation in the fields of express transportation, cross-border services, warehousing and supply chains. Sources disclosed previously that the two sides would continue to maintain independent branding and team operations after the cooperation, and the overall strategy and business direction would remain unchanged.
JD.com has profound experience in integrated supply chain logistics and has considerable advantages in the development and application of related technologies. Firm executives hope these advantages will contribute to the further development of Deppon Logistics after the acquisition. As for JD.com, the acquisition helps to further enhance its logistics networks and capabilities in domestic and international markets, and strengthen its market competitiveness.