Samreen Ahmad · · 1 min readTencent to distribute $16b worth of JD.com stake to shareholders
Tencent is cutting down its shareholding in JD.com from 17% to 2.3%, said the latter in a statement.
The Chinese gaming behemoth will distribute nearly 460 million Class A ordinary shares of JD.com to the former’s shareholders. The value of these shares amounts to over US$16 billion.
Photo credit: Daniel Cukier / Flickr
The distribution is reportedly part of a one-time dividend. This also comes at a time when the Chinese government is taking a hard stand on the monopolistic practices of tech giants.
With this, Tencent is dethroned by Walmart as the largest shareholder in JD.com, according to Reuters.
Tencent president Martin Lau will also exit JD.com’s board, effective immediately.
“The company (JD.com) and Tencent will continue to maintain their mutually beneficial business relationship, including their ongoing strategic partnership agreement,” said JD.com in a statement.
See also: Can JD.com make a splash in SEA?
JD.com posted a 25% rise in revenue for the third quarter of 2021 on the back of robust performance in its retail, logistics, property, and social commerce businesses.
Editing by Collin Furtado and Lorenzo Kyle Subido
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