China Logistics owners RRJ Capital and chairman Li Shifa aim to sell their 50 per cent stake at US$2 billion valuation

RRJ Capital and Chairman Li Shifa aim to sell their combined 50 per cent stake in the Hong Kong-listed company, valuing it at about US$2 billion

The first non-binding bid is due around mid-January, according to people familiar with the plan

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A forklift at a logistic warehouse in Nanjing in east China's Jiangsu province on Thursday, June 6, 2019. Photo: Chinatopix via AP

Published: 11:00am, 30 Dec 2020Updated: 11:00am, 30 Dec 2020

China Logistics Property Holdings’ two biggest shareholders have kicked off a plan to sell their stakes in a move that could trigger a takeover offer of the logistics operator, according to a sales document and people familiar with the matter.

RRJ Capital and Chairman Li Shifa aim to sell their combined 50 per cent stake in the Hong Kong-listed company, valuing it at about US$2 billion, or a more than 20 per cent premium to the latest price, said the people, asking not be identified as the matter is private. The first non-binding bid is due around mid-January, the people said.

The potential transaction is likely to lead to a general offer for the entire company under Hong Kong’s takeover code. Some other institutional shareholders may also participate in the sale, according to the teaser document obtained by Bloomberg News. The latest plan comes after RRJ decided not to proceed with an earlier sales discussion with a potential buyer, said the people.

Representatives at RRJ and China Logistics declined to comment.

Major industrial logistics asset disposals are rare in China, where land scarcity has been a key impediment as the government keeps close control over the resources of its top-tier cities. The sale of Shanghai-based China Logistics will trigger further consolidation in the highly fragmented industry in which GLP is currently the biggest operator, followed by China Vanke.

South Korean conglomerate CJ Group is exploring a sale of its Chinese supply chain unit, which specialises in chemical and cold storage transportation, for as much as US$1 billion, people familiar said in October.