China Logistics says top shareholder in talks to sell controlling stake

China Logistics Property Holdings Co (1589.HK) said on Thursday its top shareholder was in talks to sell its controlling stake in the company to an undisclosed buyer, which could result in a takeover offer for the storage facilities manager.

Earlier in the day, Bloomberg News reported that Chinese e-commerce giant Inc was in advanced discussions to acquire a controlling stake in China Logistics, citing people familiar with the matter., which has an about 9.4% stake in China Logistics, did not respond to a Reuters request for comment.

A Hong Kong takeover code requires that an organisation with more than 30% shareholding must make a general offer for the whole company.

China Logistics said its chairman, Li Shifa, who holds a 26.38% stake in the company through his Yupei International Investment Management, had been in talks with a potential suitor.

That stake would be equivalent to 916.5 million shares and worth about HK$3.40 billion ($436.65 million), based on Wednesday’s closing price.

The company said no final decision had been made and talks could still fall through.

Shares of China Logistics surged nearly 14% in Hong Kong on Thursday before trading in the stock was suspended, pending more information from the company.

China Logistics said it had requested the bourse to resume trading from Friday morning.