4 March, 2017
On March 1, 2017, JD.com, Inc. (NASDAQ: JD), the largest Chinese e-commerce company by revenue, entered into definitive agreements relating to the reorganization of JD Finance, which runs JD.com’s internet finance business. Pursuant to the definitive agreements, JD.com will dispose of its equity stake of 68.6% in JD Finance so that JD.com will hold neither legal ownership nor effective control of JD Finance, and will receive approximately RMB14.3 billion in cash (US$2.07 billion) upon closing and be entitled to receive 40% of the future pre-tax profit of JD Finance thereafter. In addition, JD.com will be able to convert its profit sharing right with respect to JD Finance into 40% of JD Finance’s equity interest, subject to applicable regulatory approvals.
Skadden represented JD.com, Inc. in the transaction. The Skadden Hong Kong team includes partner Julie Gao, counsel Shu Du and associate Xi Shi.
