JD.com invests $800m in delivery platform Dada Group
This aims to promote its expansion of on-demand retail and delivery.
JD.com has agreed to invest $800m in newly issued ordinary shares of Chinese delivery and retail platform Dada Group, according to a press release. After the transaction, JD.com will hold a 51% stake in the company.
Under a share purchase agreement, JD.com will purchase rhe shares at a price equal to the closing trading price of Dada’s ordinary shares on the Nasdaq Global Select Market on 19 March, the last trading day prior to the date of the share purchase agreement.
“Our increased investment will facilitate both sides to promote the expansion of on-demand retail and delivery, as well as omni-channel collaboration,” JD Retail’s CEO Lei Xu said.
The closing of the transaction is subject to satisfaction of customary closing conditions and procedures. JD.com has also agreed not to sell, transfer or dispose of any of the shares for six months after the closing.