Orrick has advised JD.com, Inc. (JD) on its HK$899 million (US$115 million) strategic investment in China Logistics Property Holdings Co., Ltd. (CNLP), representing approximately 9.90% of the enlarged share capital of CNLP following the investment. In connection with this investment, JD has the right to nominate one non-executive director to be appointed to the board of directors of CNLP.
Orrick’s client JD is a leading technology-driven e-commerce company and retail infrastructure service provider in China, and is listed on the NASDAQ (stock code: JD). JD is a member of the NASDAQ100 and a Fortune Global 500 company, and is one of CNLP’s largest clients. CNLP is a leading provider of premium logistics facilities in China, and is listed on the Hong Kong Stock Exchange (stock code: 1589.HK). As of December 31, 2017, CNLP operated a portfolio of 130 logistics facilities with an aggregate area of 3.1 million square meters, located in 27 logistics parks in 14 provinces or municipalities across China.
The Orrick team advising on this transaction was led by Shanghai-based corporate partner Jie (Jeffrey) Sun and Hong Kong-based M&A and private equity partner Mark Lehmkuhler.
This investment is the latest in a series of important corporation transactions that Orrick has advised JD on since 2014, including the recent US$2.5 billion financing for its logistics subsidiary JD Logistics earlier in 2018, JD’s US$397 million investment in London-based luxury online retailer Farfetch in 2017, and JD’s US$1.5 billion strategic alliance with Walmart and the merger of JD’s O2O business JD Daojia with Dada Nexus, each in 2016.