Chinese Internet firm Tencent plans to buy a 15 percent stake in JD.com, a major online direct sales company in China, before the latter launches its initial public offering (IPO) in the United States.<\/p>\n
The purchase, representing 251,678,637 outstanding JD ordinary shares, will cost Tencent 214.6 million U.S. dollars and its e-commerce branches, according to Tencent’s statement filed with Hong Kong exchange on Monday.<\/p>\n
After the purchase, Tencent will continue to buy 5 percent of JD’s outstanding ordinary shares on a post-IPO basis, the statement said.<\/p>\n
In return, JD will take over Tencent’s business-to-consumer (B2C) and consumer-to-consumer (C2C) platforms wanggou.com and paipai.com, with all capital, assets, liabilities transferred to JD. It will also gain a minor stake in Tencent’s other online shopping website yixun.com and the right to buy the site’s remaining shares.<\/p>\n
The cooperation, dubbed as the two companies’ overall business collaboration in e-commerce business, aims to win a leverage in the competition with another Chinese e-commerce firm Alibaba, which owns and operates the country’s largest online purchase platform.<\/p>\n
In addition, Tencent will offer JD level 1 access points at WeChat and Mobile QQ, two of the most popular communication mobile applications developed by Tencent, to boost the latter’s growth in physical goods e-commerce, the statement said.<\/p>\n
The two firms will also further ties in mobile applications and payment solutions, with JD being regarded as Tencent’s preferred partner in certain business areas.<\/p>\n
Liu Chiping, president of Tencent, will become a member of JD’s board after the purchase agreement.<\/p>\n","protected":false},"excerpt":{"rendered":"
Chinese Internet firm Tencent plans to buy a 15 percent stake in JD.com, a major online direct sales company in China, before the latter launches its initial public offering (IPO) in the United States. The purchase, representing 251,678,637 outstanding JD ordinary shares,\u2026<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[6],"tags":[3],"class_list":["post-2577","post","type-post","status-publish","format-standard","hentry","category-newsofchina","tag-null"],"yoast_head":"\n