Skadden, Arps, Slate, Meagher & Flom and Davis Polk & Wardwell had the lead roles in Chinese online retailer JD.com’s $1.3 billion private share placement to technology company Tencent Holdings Ltd.
The shares were offered through Huang River Investment Ltd., a wholly owned subsidiary of Tencent, alongside JD’s Nasdaq initial public offering this week, which raised an additional $1.78 billion. Shenzhen-based Tencent will now own about 20 percent of JD, operator of Jingdong Mall, China’s second-largest online shopping site after Alibaba Group Holdings Ltd.’s Taobao.com.
Skadden Hong Kong partners Julie Gao and Jonathan Stone represented JD on the placement, while Davis Polk advised Tencent. Skadden also represented JD on the IPO, with Davis Polk serving as underwriters’ counsel.
The share placement significantly expands upon a previous $214.7 million strategic investment by Tencent in JD. The two companies are trying to integrate popular Tencent social networking applications like Wechat with JD’s online retail resource in an effort to challenge Alibaba’s dominant position in Chinese e-commerce.