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Tencent Holdings Ltd. plans to substantially reduce its stake in JD.com Inc. by issuing class-A ordinary shares to some of its shareholders as an interim dividend.
The social and videogaming company’s stake will fall to 2.3% from the current 17.0% post distribution of JD.com shares, a statement by the two companies said Thursday.
Tencent
700,
plans to issue 460 million A-shares of JD.com
JD,
by way of distribution in specie to certain qualifying shareholders of Tencent.
Those shareholders who aren’t qualified to get JD.com shares will receive cash, Tencent said.
Martin Chiping Lau, who was Tencent’s representative on JD.com’s board, has resigned as a director given the social media company’s reduced investment in JD.com.
JD.com, which is listed on the Nasdaq, had raised 3.9 billion U.S. dollars from a Hong Kong stock offering in 2020. Its shares on the Hong Kong Stock Exchanged closed 5.8% higher at 279.20 Hong Kong dollars ($35.79) each.
