JD Finance eyes stake in HK brokerage
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