JD Fi­nance eyes stake in HK bro­ker­age

New Straits Times - - Business / World -

HONG KONG:JD Fi­nance, a unit of China’s JD.com, is in talks to buy a 24 per cent stake worth about US$1.5 bil­lion (RM6.29 bil­lion) in do­mes­tic bro­ker­age First Cap­i­tal Se­cu­ri­ties Co Ltd, said sources.

If the deal goes through, it would be a pre­cur­sor to JD Fi­nance ven­tur­ing into fi­nan­cial sec­tors such as se­cu­ri­ties, bank­ing and in­sur­ance that are see­ing the en­try of sev­eral new tech­nol­ogy-fo­cused play­ers. Cur­rently, it mainly offers on­line fi­nan­cial ser­vices and prod­ucts in China.

JD Fi­nance was look­ing to buy the stake from First Cap­i­tal’s top and third-largest share­hold­ers, Bloomage Xinyu In­vest­ment and Nengx­ing Hold­ings Group, that own 15.4 and 8.5 per cent, re­spec­tively, said one of the sources.

Based on First Cap­i­tal’s mar­ket value of about US$6 bil­lion as of yes­ter­day, a 24 per cent stake in the com­pany is worth about US$1.5 bil­lion.

The deal, how­ever, was not yet fi­nalised as no agree­ment had been reached over val­u­a­tion, said the sources.

JD.com, which owned 68.6 per cent of its fi­nance unit be­fore it was spun-off this year, sold 28.6 per cent of the unit for US$2.2 bil­lion to a cou­ple of undis­closed in­vestors. Reuters

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