Tencent and Jingdong close to shareholding deal

jingdong

China’s leading internet company Tencent, and e-commerce firm JD.com, also known as Jingdong, may soon announce a deal in which Tencent holds a stake of about 16% in Jingdong, according to Saturday media reports.

The two sides have basically reached the shareholding deal and may announce it on Monday, Zhengzhou Evening News reported, citing a source close to Tencent.

As well as its 16% stake, Tencent will transfer its e-commerce assets, including yixun.com, to Jingdong to collaborate in their competition against Chinese e-commerce giant Alibaba, the newspaper said.

The deal was also confirmed by Caixin, a Chinese financial and business news provider.

Its report on Saturday said the 16% shareholding is still subject to changes before final announcements, citing several sources with knowledge of the deal.

One was quoted by Caixin as saying, “16% is the minimum amount according to present negotiations. The possibility of a shareholding of more than 20% cannot be ruled out.”

When phoned by Xinhua, both Jingdong and Tencent declined to comment on the reports, neither did they deny the deal.