JD.com, Inc. (NASDAQ:JD), China’s largest retailer, has entered into definitive agreements for the approximately $2.5 billion financing for its logistics subsidiary, JD Logistics.
Investors included Hillhouse Capital, Sequoia China, China Merchants Group, Tencent, China Life, China Development Bank Capital FOF, China Structural Reform Fund and ICBC International, among others.
After the completion of this transaction, JD.com will remain the majority shareholder of JD Logistics with an 81.4% stake. The financing is expected to close in the first quarter of 2018, subject to customary closing conditions.
The financing will enable JD Logistics, which is led by Zhenhui Wang, CEO, to further enhance its smart supply chain network with openness and integration.
Led by Richard Liu, Chairman and CEO, JD.com owns and operates six major logistics networks, including normal-sized items, bulky items, cold chain, B2B, cross-border and crowd-sourced (New Dada). It is both the largest e-commerce company in China, and the largest Chinese retailer, by revenue, with a fulfillment infrastructure of 7 centers and 405 warehouses covering 2,830 counties and districts across China, staffed by its own employees.