JD.com to sell finance arm for 14b yuan
JD.com Inc agreed to sell its finance arm for 14.3 billion yuan (RM9.35 billion) in cash while retaining a share of its future profits, part of a deal to spin off the fast-growing division.
The sale and spinoff of JD Finance would be completed by the middle of this year, said the company on Thursday without naming buyers or investors, apart from chief executive officer Richard Liu.
The co-founder said in November he intended to split finance away from its core e-commerce business, a similar structure to what Alibaba Group Holding Ltd has with affiliate Ant Financial.
A spokesman for JD.com said the deal valued the spun-off unit at more than 50 billion yuan.
The deal was outlined as JD.com reported revenue that beat analysts’ estimates.
A spinoff would create a powerhouse capable of providing a host of loan, securities and insurance products, said Liu.
It would help it gain the necessary regulatory licences by raising money solely from domestic investors. JD Finance last raised funds last year at a valuation of about US$7 billion.
Hiving off JD.com’s entire 68.6 per cent stake in JD Finance may also make the e-commerce operator itself attractive to investors.
Under the deal, Liu will take about 4.3 per cent of the unit, but maintain a majority of voting rights through proxy agreements.