OOIL, Cosco, JD Logistics form online logistics platform joint venture
A SUBSIDIARY of Orient Overseas International Ltd, Gold Talent, Cosco Shipping Logistics and JD Logistics, have entered into an investment and cooperation agreement to invest in online logistics platform E-Shipping through a joint venture formation
A SUBSIDIARY of Orient Overseas International Ltd, Gold Talent, Cosco Shipping Logistics and JD Logistics, have entered into an investment and cooperation agreement to invest in online logistics platform E-Shipping through a joint venture formation.
Under the deal, the formation of the joint venture will involve the injection of the JD Onshore Company into the group by JD Logistics and the purchase of the JD Offshore Company by the venture funded by JD Logistics.
Gold Talent and Cosco Shipping Logistics will acquire E-Shipping - which includes share transfer agreements that would give Gold Talent 42.35 per cent equity interest and Cosco Shipping Logistics 34.65 per cent equity interest in E-Shipping - before injecting it into the joint venture. The formation also includes capital injection by JV ESOP and E-Shipping ESOP.
The joint venture will be set up in Shanghai with an initial investment of CNY255 million (US$38 million). The capital injections by JV ESOP of CNY33 million and E-Shipping ESOP of CNY12 million will increase the registered capital at completion of the joint venture formation to CNY300 million.
JD Logistics will hold 45 per cent of registered capital in the joint venture; Gold Talent 22 per cent; Cosco Shipping Logistics 18 per cent; JV ESOP 11 per cent; and E-Shipping ESOP 4 per cent.
E-Shipping ESOP will maintain 23 per cent ownership of E-Shipping, an online logistics platform controlled by Cosco and established in 2014, reports American Shipper.
OOIL said the joint venture and the acquisition allows it to leverage JD Logistics' advanced technology to gain wider exposure in the e-commerce segment and actual experience in handling both 'business to business' and 'business to customers' international e-commerce logistics and to drive for future growth in these markets.