DEALS

Zhong Lun Advises JD.com on Strategic Partnership with Tencent

Release time：2014-03-12 Voice Announcements

On March 10, 2014, JD.com Inc. (“JD"), a leading online direct sales company in China and Tencent Holdings Limited (“Tencent", 00700.HK), a leading Internet company serving the largest online community in China, jointly announced that they have formed a strategic partnership aiming at providing superior e-commerce services to mobile and Internet users in China.

As part of the transaction, JD will acquire 100% interests in Tencent’s QQ Wanggou B2C and PaiPai C2C marketplace businesses, logistics personnel and assets, a minority stake in Yixun, and will enter into a strategic cooperation agreement with Tencent. In addition, JD has the right to acquire the remaining stake of Yixun in future. As part of the strategic cooperation, Tencent will support JD’s growth in the physical goods eCommerce business by offering level 1 access points in Weixin and Mobile QQ, and support from other key platforms to JD. Both parties will also cooperate on online payment services to improve users’ online shopping experience. In connection with the transaction, JD will issue new shares to Tencent. Initially, Tencent will hold approximately 15% in JD upon closing of the transaction. Furthermore, Tencent will subscribe at IPO price for an additional 5% of JD on a post-IPO basis.

This transaction represents a landmark strategic partnership in the large and fast growing e-commerce, mobile and Internet industries in China. Zhong Lun Law Firm has acted as the PRC counsel for JD in this transaction. The legal team from Zhong Lun is led by Anthony Zhao and Scott Yu, and comprises lawyers from its Shanghai, Beijing and Shenzhen offices. Wu Peng has provided critical legal support, and other core members include William Jia, Vincent Shen, Rafael Liu and Emmy Luo. Frank Jiang, Vega Huang, Joyce Gu, Crystal Li and Jane Chen have also participated in the transaction.

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Zhong Lun Advises JD.com on Strategic Partnership with Tencent