(Bloomberg) Walmart Inc. is seeking to raise up to $3.74 billion by selling a stake in Chinese e-commerce company JD.com, according to people familiar with the matter.
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The U.S. retailer plans to offer 144.5 million shares at a price range of $24.85 to $25.85, said the people, who asked not to be identified as the information is private. Morgan Stanley is the broker-dealer for the offering.
Representatives for Walmart, JD.com and Morgan Stanley did not immediately respond to requests for comment.
JD.com shares closed at $28.19 a share on Tuesday, down 10% in after-hours trading. Walmart shares are offering at a discount of as much as 11.8% from Tuesday’s closing price, according to Bloomberg calculations.
Walmart is the company’s largest shareholder, according to data compiled by Bloomberg. The sale marks the end of a partnership between the two companies that began in 2016 when Walmart acquired a 5% stake in the Chinese company. The deal also included JD.com’s acquisition of Yihao, Walmart’s online marketplace that focused on selling groceries to upscale female consumers in major Chinese cities, the companies said at the time. Later that year, Walmart increased its stake in JD.com to 10.8%.
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