JD.com Inc (NASDAQ:JD) is trading lower Thursday after the company announced that Tencent Holdings Ltd (OTC:TCEHY) plans to cut its stake in the company.
Tencent currently owns about 17% of JD.com. Tencent plans to distribute approximately 460 million JD.com shares to its shareholders.
Following the distribution, Tencent will own about 2.3% of JD.com and Tencent shareholders who received shares in the distribution will become shareholders of JD.com.
JD.com and Tencent plan to continue their mutually beneficial business relationship, including their ongoing strategic partnership agreement.
JD.com also announced that Martin Chiping Lau will retire from the company's board, effective immediately.
"Martin’s extensive experience has been highly valuable to JD.com during his tenure. We will greatly miss his contributions to the board, and look forward to continuing the close and trusted strategic partnership we have formed with Tencent to create more compelling value for our shareholders and the society," said Richard Qiangdong Liu, chairman and CEO of the JD.com.
Related Link: JD Tumbles 8% In Hong Kong As Tencent Cuts Stake, Hang Seng Extends Gains
JD.com is China's second-largest e-commerce company in terms of transaction volume, offering a wide selection of authentic products at competitive prices, with speedy and reliable delivery.
JD Price Action: JD.com has traded as high as $108.29 and as low as $61.65 over a 52-week period.
The stock was down 9.28% at $66.91 at time of publication.
