JD.Com Divests Finance Arm As JD Finance Eyes Domestic IPO, Founder Tightens Control

Chinese e-commerce operator JD.com Inc. has agreed to divest all its shares in its financial services arm JD Finance for around RMB14.3 billion (US$2.1 billion), as the Internet finance unit dismantles a legal structure for overseas listing and plans a domestic IPO instead.

At the same time, JD.com's founder Richard Liu obtained control of the Internet finance unit, which was previously majority owned by parent JD.com, as Liu is to acquire an additional 4.3% stake in JD Finance and can vote for JD.com employees via share voting arrangements.

NASDAQ-listed JD.com has agreed to sell all of its 68.6% equity stake in JD Finance as part of a spin-off for JD Finance to become an independent entity backed only by domestic investors. In exchange, JD.com will obtain RMB14.3 billion (US$2.1 billion) in cash and 40% of JD Finance's future pre-tax prof...

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