Shenzhen-based Chinese internet services giant Tencent Holdings Ltd is to acquire a 15% stake in Beijing-based e-commerce firm JD.com for US$214.7 million, according to a joint announcement of the two companies.
In an agreed strategic cooperation between the two companies, JD will acquire 100% interests in Tencent’s QQ Wanggou B2C and PaiPai C2C marketplace businesses, logistics personnel and assets, a minority stake in Yixun, and the right to acquire the remaining stake of Yixun in future.
Tencent has the right to subscribe to an additional 5% stake at JD’s potential U.S. IPO this year.
Tencent will support JD’s growth in the physical goods e-commerce business by offering access points in Tencent’s Weixin and mobile messenger QQ, as well as provide support on other key platforms.
The two companies will also cooperate on online and mobile payment services to improve users’ shopping experience.
Tencent’s president Martin Lau will join JD’s board of directors after the transaction.
Bank of America Merrill Lynch and China Renaissance acted as financial advisers to JD, while Barclays Bank acted as financial adviser to Tencent on this transaction.
JD filed for a US$1.5 billion U.S. listing of its shares in January.