off-the-wire

UPDATE 1-China's JD.com to spin off industrial, property units in Hong Kong float

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Add restructuring details, background; updates shares) HONG KONG, March 30 (Reuters) - Chinese e-commerce firm JD.com Inc said on Thursday it planned to spin off its property and industrial units and list them on the Hong Kong Stock Exchange. Upon completion of the proposed spin off of JD Logistics and JD Property, JD.com said it would continue to indirectly hold more than 50% of the shares in both units which will remain as subsidiaries of the company. U.S.-listed shares of JD.com rose 7% in early trading on Thursday after falling nearly 26% this year, as of last close.


The revamp comes a day after bigger rival Alibaba Group said it was planning to split into six units and explore fundraisings or listings for most of them, marking the biggest restructuring in its 24-year history.


The size and structure of JD.com units' initial public offering have not yet been finalised. This is not the first time JD.com has gone for a revamp of its business.


The company spun off its logistics unit into a standalone entity in 2017 and then opened up its delivery and warehousing services to third-party companies.


The Beijing-based company said in January it


was winding down its e-commerce business in Indonesia and Thailand, where it faced stiff competition from Sea Ltd-owned Shopee.
(Reporting by Twinnie Siu in Hong Kong and Tiyashi Datta in Bengaluru; Editing by Sharon Singleton and Maju Samuel)

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