Wal-Mart Stores Inc said on Monday it plans to sell its Chinese e-commerce business Yihaodian to Chinese online retailer JD.com Inc for a 5% equity stake in JD.com, a strategic alliance that aims to expand WalMart's reach in China to more customers.
Under the deal, JD.com will issue about 145 million new class A shares to Wal-Mart, worth about US$1.5 billion ($2 billion) at JD.com's current valuation.
Shares of Wal-Mart rose 26 cents, or 0.4%, to US$71.21 in afternoon New York Stock Exchange trading. JD.com's ADRs were up nearly 8%, or $1.56, at US$21.58.
Wal-Mart took a stake in Yihaodian, which has focused on online grocery sales and caters to affluent female customers, in 2011 before taking full ownership last July.
That deal combined Yihaodian's local expertise with Wal-Mart's global sourcing and supply chain capabilities, but growth was hindered when Wal-Mart narrowed the number of sellers on the site, according to a note from Barclays issued on Monday.
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Under the deal, JD.com will issue about 145 million new class A shares to Wal-Mart, worth about US$1.5 billion ($2 billion) at JD.com's current valuation.
Shares of Wal-Mart rose 26 cents, or 0.4%, to US$71.21 in afternoon New York Stock Exchange trading. JD.com's ADRs were up nearly 8%, or $1.56, at US$21.58.
Wal-Mart took a stake in Yihaodian, which has focused on online grocery sales and caters to affluent female customers, in 2011 before taking full ownership last July.
That deal combined Yihaodian's local expertise with Wal-Mart's global sourcing and supply chain capabilities, but growth was hindered when Wal-Mart narrowed the number of sellers on the site, according to a note from Barclays issued on Monday.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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