JD.com and Dada Announce Progress Update on Investment in Dada

Rhea-AI Summary

JD.com has received all regulatory approvals for its investment in Dada Nexus Limited, expected to close by the end of February 2022. This deal involves JD.com acquiring a significant stake, totaling a cash investment of $546 million, which will result in JD.com holding approximately 52% of Dada's shares. After the completion of this transaction, JD.com plans to consolidate Dada's financial results into its own statements. The investment is a strategic move to enhance JD.com's local retail delivery capabilities through Dada's platforms.

Positive

• JD.com to acquire approximately 52% of Dada's shares, strengthening its market position.
• Investment of $546 million expected to enhance JD.com's local on-demand delivery capabilities.

Negative

• Resignation of Mr. Jun Yang from Dada's board may indicate changes in management dynamics.

SHANGHAI, China, Feb. 25, 2022 (GLOBE NEWSWIRE) -- JD.com, Inc. (“JD.com”) (Nasdaq: JD; HKEx: 9618), a leading supply chain-based technology and service provider, and Dada Nexus Limited (“Dada”) (Nasdaq: Dada), China’s leading local on-demand delivery and retail platform, today jointly announced that JD.com’s investment in Dada has obtained all the requisite regulatory approvals. It is currently expected that this transaction will close by end of February 2022. Upon the closing of this transaction, Dada will issue to JD.com certain number of ordinary shares of Dada in consideration for US$546 million in cash and certain strategic resources from JD.com. JD.com will hold, taking into account its existing shareholding, approximately 52% of Dada’s issued and outstanding shares and expects to consolidate the financial results of Dada into its consolidated financial statements. Mr. Jun Yang will resign from his position as a director of the board of directors of Dada, effective upon closing of the transaction.

About JD.com
JD.com is a leading supply chain-based technology and service provider. JD.com’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. JD.com has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries.

About Dada
Dada is a leading platform of local on-demand retail and delivery in China. It operates JDDJ, one of China’s largest local on-demand retail platforms for retailers and brand owners, and Dada Now, a leading local on-demand delivery platform open to merchants and individual senders across various industries and product categories. Dada’s two platforms are inter-connected and mutually beneficial. The Dada Now platform enables improved delivery experience for participants on the JDDJ platform through its readily accessible fulfillment solutions and strong on-demand delivery infrastructure. Meanwhile, the vast volume of on-demand delivery orders from the JDDJ platform increases order volume and density for the Dada Now platform.

Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Statements that are not historical facts, including statements about beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. All information provided herein is as of the date of this announcement, and neither JD.com nor Dada undertakes any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

JD.com
Investor Relations
Ms. Ruiyu Li
+86 (10) 8912-6805
E-mail: IR@JD.com

Dada Nexus Limited
Investor Relations
Ms. Caroline Dong
E-mail: ir@imdada.cn

FAQ

What does JD.com's investment in Dada entail?

JD.com is investing $546 million to acquire approximately 52% of Dada's shares.

When is the JD.com and Dada transaction expected to close?

The transaction is expected to close by the end of February 2022.

How will JD.com consolidate Dada's financial results?

Post-closure, JD.com plans to include Dada's financial results in its consolidated financial statements.

What is the significance of JD.com holding 52% of Dada?

Holding 52% allows JD.com to strengthen its influence and operations within Dada.

Who will resign from Dada's board as a result of the transaction?

Mr. Jun Yang will resign from his position as a director upon closing of the transaction.