JD announced that Tencent Holdings’ stake in JD will be reduced from approximately 17% to approximately 2.3%.
On December 23, JD Group announced that Tencent Holdings Limited, which currently indirectly holds approximately 17.0% of the JD’s outstanding shares and JD will distribute its 457,326,671 (approximately 460 million) Class A ordinary shares of JD Group to its shareholders. After the distribution, Tencent’s shareholding in Jingdon will be approximately 2.3%, while Tencent’s shareholders who receive shares of JD in this distribution will become shareholders of JD.
At the same time, Liu Chiping has resigned from JD’s Board of Directors with immediate effect. He has been a member of the company’s board of directors and a member of the remuneration committee since March 2014.
For its part, Tencent also announced that the company will distribute to its shareholders its holdings of approximately 460 million Class A common shares of JD Group, and Tencent shareholders who receive shares of JD in this distribution will become new shareholders of JD. Tencent and JD will continue to maintain a mutually beneficial business relationship, including the existing strategic cooperation agreement.
Specifically, the approximately 460 million shares to be distributed represent 86.4% of Tencent’s Class A common shares of JD Group, or approximately 14.7% of the total number of issued shares in JD Group. After the distribution, Tencent’s shareholding in JD will drop from 17% to 2.3% and it will no longer be the largest shareholder.
Based on JD’s closing price of HK$279.2 per share on December 22, 2021, Tencent’s allocation of approximately 460 million shares is valued at approximately HK$127.7 billion (equivalent to approximately $16.373 billion).