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

Rhea-AI Summary

JD.com announced that its investment in Dada Nexus has received all necessary regulatory approvals, with the transaction expected to close by the end of February 2022. JD.com will invest US$546 million in cash and resources for a significant stake in Dada, resulting in approximately 52% ownership. This acquisition is set to enhance JD.com's consolidation of Dada's financial results into its own, strengthening its position in China's local on-demand delivery and retail market.

Positive

• JD.com to acquire approximately 52% of Dada Nexus, enhancing market control.
• Transaction strengthens JD.com's supply chain presence in local on-demand retail.
• Consolidation of Dada's financials expected to improve overall performance.

Negative

• None.

BEIJING, 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.

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 are the details of JD.com's investment in Dada Nexus?

JD.com is investing US$546 million in Dada Nexus, acquiring approximately 52% ownership following regulatory approvals.

When will JD.com's investment in Dada Nexus close?

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

How will JD.com's acquisition of Dada Nexus impact its financials?

JD.com expects to consolidate Dada's financial results, potentially enhancing overall performance.

What strategic benefits does JD.com gain from acquiring Dada Nexus?

Acquiring Dada strengthens JD.com's position in China's local on-demand delivery and retail market.