(Bloomberg) — Walmart Inc. is seeking to raise $3.74 billion by selling its stake in Chinese e-commerce company JD.com Inc., people with knowledge of the matter said.
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The U.S. retailer is offering 144.5 million shares in a price range of $24.85 to $25.85, said the sources, 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 at $28.19 each on Tuesday, down 10% in after-market trading. Walmart shares are trading at a discount of as much as 11.8% to Tuesday’s close, according to Bloomberg calculations.
Walmart is the largest shareholder, according to data compiled by Bloomberg. The stake sale would end 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 saw JD.com acquire Walmart’s Yihaodian online marketplace, which focused on selling groceries to upscale 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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