Walmart sells JD.com stake via Morgan Stanley, refocuses on China
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The news: Walmart has sold its entire USD3.74 billion ($5.55 billion) stake in Chinese e-commerce giant JD.com, Reuters reported citing unnamed sources.
The move comes as it plans to refocus on its own operations in China, particularly its Sam's Club warehouse chain.
The sale, marking Walmart’s exit from an eight-year investment, was handled by Morgan Stanley via a placement that was fully subscribed at the top end of the offered range, Reuters said.
The context: The move comes amid fierce competition in the China's e-commerce sector while sluggish consumer demand diminishes its appeal to investors.
The numbers: JD.com shares plummeted nearly 9% in Hong Kong and 6% in US trading following the news.
What they said: Walmart and JD.com will continue their commercial partnership, the company said.
"This decision allows us to focus on our strong China operations for Walmart China and Sam's Club, and deploy capital towards other priorities," Walmart told the publication in a statement.
The source: Reuters
