JD Logistics’ $2.5 Billion Financing

Orrick has advised JD.com, Inc. (NASDAQ: JD) on the deal

JD.com, Inc. (NASDAQ:JD), China’s largest retailer has entered into definitive agreements for the financing for its logistics subsidiary, JD Logistics, with investors including Hillhouse Capital, Sequoia China, China Merchants Group, Tencent, China Life, China Development Bank Capital FOF, China Structural Reform Fund and ICBC International, among others. The total amount raised in this round is expected to be approximately $2.5 billion.

After the completion of this transaction, JD.com will remain the majority shareholder of JD Logistics with an 81.4% stake. The financing is expected to close in the first quarter of 2018, subject to customary closing conditions.

JD.com has been operating its self-owned logistics system since 2007, and established JD Logistics as a stand-alone subsidiary in April 2017. Over the past decade, JD.com has strived to leverage its infrastructure, management experience and expertise to improve the logistics services available in China. Currently, JD.com is the only company in the world that owns and operates six major logistics networks, including normal-sized items, bulky items, cold chain, B2B, cross-border and crowd-sourced (New Dada), covering over 99% of China’s population.

JD.com is both the largest e-commerce company in China, and the largest Chinese retailer, by revenue. The company strives to offer consumers the best online shopping experience. Through its user-friendly website, native mobile apps, and WeChat and Mobile QQ entry points, JD offers consumers a superior shopping experience. The company has the largest fulfillment infrastructure of any e-commerce company in China. As of September 30, 2017,

JD.com operated 7 fulfillment centers and 405 warehouses covering 2,830 counties and districts across China, staffed by its own employees. JD.com is a member of the NASDAQ100 and a Fortune Global 500 company.

The Orrick team included Jeffrey Sun (Picture), Scott Peterman, Echo Wang, Chen Lu and Bingyan Xu.

 

Involved fees earner: Jie Jeffrey Sun – Orrick; Scott Peterman – Orrick; Lu Wang – Orrick; Chen Lu – Orrick;

Law Firms: Orrick;

Clients: JD.com Inc.;

 

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Author: Michael Patrini