JD.com Inc. is in advanced talks to acquire a controlling stake in China Logistics Property Holdings Co., according to people familiar with the matter.
The Chinese e-commerce giant is close to an agreement to acquire the stake in the Hong Kong-listed firm from the major shareholders, China Logistics chairman Li Shifa and RRJ Capital, the people said.
Shares of China Logistics surged more than 13% before they were suspended Thursday pending inside information, according to an announcement.
China Logistics has a market value of about HK$14.7 billion ($1.9 billion) as of the time of the suspension.
Bank of America Corp. is advising JD.com on the talks, while UBS Group AG is advising the sellers, one of the people said.
No final decision has been made and the deal could still fall apart, the person said.