Tencent, JD to invest $863m in Vipshop

Chinese tech heavyweights Tencent Holdings Ltd and JD said on Monday that they will jointly invest $863 million in cash in Chinese online discount retailer Vipshop Holdings Ltd.

Tencent and JD will purchase the newly issued Class A ordinary shares of Vipshop for $604 million and $259 million respectively. The purchase price will be $65.40 per Class A ordinary share, which is equivalent to $13.08 per American depositary share of Vipshop.

Upon completion of the transaction, Tencent and JD will take 7 percent and 5.5 percent stakes in Vipshop, respectively. Along with the equity investment, the two companies have inked a strategic cooperation agreement with Vipshop.