China’s ZM Logistics is exploring $1 billion sale

Shanghai Zhengming Modern Logistics Co., a Chinese cold-chain logistics company backed by buyout firms, is exploring strategic options including a sale, according to people familiar with the matter.

ZM Logistics, as the company is known, is working with a financial adviser to review options that could value the business at about $1 billion, the people said, asking not to be identified because the matter is private. Other alternatives under consideration include an initial public offering, a plan that had already been examined in the past, the people said.

The company, which provides temperature-controlled logistics and transportation services across China, has drawn preliminary interest from other investors including private equity firms and industry players, the people said.

Considerations are at an early stage, no final decision has been made and the owners could still decide against pursuing any transaction, the people said. A person who answered the phone at ZM Logistics’ office in Shanghai said nobody was available to comment.

Shareholders in ZM Logistics include private equity firms such as Primavera Capital Group and Cathay Capital, as well as Morgan Stanley, China Development Bank and the World Bank’s International Finance Corporation, according to the company’s website. The investors didn’t respond to a request for comment.

Logistics assets have been attracting interest from buyers across Asia Pacific this year. In February, South Korea’s CJ Logistics Corp. and partners agreed to sell Chinese unit CJ Rokin Logistics Supply Chain Co. to FountainVest Partners for 733.8 billion won ($614 million).