Walmart seeks to raise $3.74 bn in sale of JD.com stake, term sheet shows | World News
Walmart is the largest shareholder of JD.com and owns a 5.19 per cent stake in the e-commerce company, according to LSEG data | (Photo: Reuters)
US retailer Walmart is seeking to raise up to $3.74 billion by selling its stake in Chinese e-commerce firm JD.com , according to a term sheet seen by Reuters on Wednesday.
Walmart is offering 144.5 million American depositary shares in the price range of $24.85 to $25.85, the term sheet shows, and Morgan Stanley is the broker-dealer of the offering.
Walmart said in a statement that JD.com had been a valued partner over the past eight years, and the US retailer was committed to a continued commercial relationship with the Chinese e-commerce giant.
“This decision allows us to focus on our strong China operations for Walmart China and Sam’s Club, and deploy capital towards other priorities,” Walmart said.
JD.com’s Hong Kong-listed shares fell more than 10 per cent in early trading on Wednesday. US-listed shares dropped 10 per cent in after-market trading on Tuesday to $25.50 after Bloomberg first reported the share sale plan.
JD.com declined to comment. Morgan Stanley did not immediately respond to Reuters’ request for comment.
Walmart is the largest shareholder of JD.com and owns a 5.19 per cent stake in the e-commerce company, according to LSEG data.
The partnership between the two companies began in 2016, when Walmart sold its Chinese online grocery store, Yihaodian, in return for a 5 per cent stake in JD.com.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Aug 21 2024 | 9:19 AM IST
