Benzinga | Sep 3, 2021 11:52AM EDT

JD.com Nears Deal To Acquire China Logistics

* JD.com Inc (NASDAQ:JD) subsidiary, JD Property, agreed to acquire a 26.4% stake in China Logistics Property Holdings at a valuation of $2.1 billion (HK$16.4 billion), Bloomberg reports.

* The proposed offer price of $513.45 million (HK$3.99 billion) or HK$4.35 per share represents a premium of 7.4% above the company's Wednesday closing price of HK$4.05, as per the Reuters report.

* The transaction will increase JD.com's stake in China Logistics to a 35.8% stake in China Logistics, accomplishing the Hong Kong takeover code to make a general offer for the whole company.

* The transaction will bolster JD.com's position in the e-commerce arena, dominated by a player like Alibaba Group Holding Ltd (NYSE:BABA).

* Price Action: JD shares traded lower by 1.25% at $79.24 on the last check Friday.