(Yicai Global) Aug. 14 -- The logistics unit of JD.Com,China’s second-largest online retailer, will payCNY3 billion (USD432 million) for a controlling stake inKY Express Groupas part of its strategy to become aleading supply chain-based technology and services provider.

The deal,which involves acquiring existing shares and subscribing for newly issued stock,will be completed this quarter, Beijing-based JD Logistics said in a stock exchange filing, without providing further details.

The acquisition of KY Express, which provides air cargo services at major airports across China, follows closely on the heels of JD.Com taking a minority stake in HongKongsupply chain managerLi& Feng for USD100 million.

Shenzhen-based KY Express is “a reliable delivery services provider and industry leader in express courier services with innovative technology and advanced operations,”said Wang Zhenhui, chief executive of JD Logistics.

Founded in 2007, KY Express provides same-day, next-day and two-day deliveries. With 12 all-cargo charter flights, it had an average daily air cargo volume of more than 2,000 tons as of May.

JD Logistics’ infrastructure has spread nationwide, and its network for large and medium-sized parcels has achieved almost national China. Its self-operated delivery service covers 99 percent of the population, and can reach 90 percent of its counties and districts in 24 hours.

The firm is working with all sectors to build a global smart supply chain infrastructure network and platform, it added.

Shares of JD.Com [HKG:9618] fell 0.6 percent today to HKD243 (USD31.35). Its US-listed stock [NASDAQ: JD] climbed in pre-market trade after also declining 0.6 percent yesterday to USD62.54.

Editor: Ben Armour