Suning Commerce Group to buy Tiantian Express for 4.25 billion yuan
Chinese retail giant Suning Commerce Group Co Ltd announced on Monday that it plans on spending 4.25 billion yuan ($612.13 million) to buy Hangzhou-based logistics company Tiantian Express, in a bid to offer expanded delivery capabilities and solve the last mile problem.
Jiangsu Suning Logistics Co Ltd, logistics affiliate of Suning Commerce Group, signed an agreement with Tiantian Express on Dec 30 spending 2.975 billion yuan to buy 70 percent of the stake in Tiantian Express.
After the delivery, Suning Logistics, or its operating company, will purchase the remaining 30 percent stake in Tiantian Express with 1.275 billion yuan within 12 months. Then Suning Logistics and its operating company will hold 100 percent stake in Tiantian Express.
Officially established in 2010, Tiantian express focuses on the logistics delivery business nationwide. And its annual revenue in 2015 grew by 50.6 percent from 2014.