(Times of Update) — Walmart Inc. is seeking to raise up to $3.74 billion by selling its stake in Chinese e-commerce company JD.com Inc., people familiar with the matter said.
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The U.S. retailer is offering 144.5 million shares at a price of between $24.85 and $25.85, said the people, who asked not to be identified because the information is private. Morgan Stanley is the broker-dealer for the offering, they added.
Representatives for Walmart, JD.com and Morgan Stanley did not immediately respond to requests for comment.
JD.com shares closed Tuesday at $28.19 each and were down 10% in after-hours trading. Walmart shares are trading at a discount of as much as 11.8% to Tuesday’s close, according to Times of Update calculations.
Walmart is its largest shareholder, according to data compiled by Times of Update. The stock sale would mark the end of a partnership between the two companies that began when Walmart acquired a 5% stake in the Chinese company in 2016 in a deal that also included JD.com taking over Walmart’s Yihaodian online marketplace, which focused on selling groceries to high-end female shoppers 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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