Paul, Weiss, Rifkind, Wharton & Garrison, Skadden, Arps, Slate, Meagher & Flom and Latham & Watkins have the lead roles on an $863 million deal that will see technology giant Tencent Holdings Ltd. boost its e-commerce holding.
As part of the deal, Tencent has joined forces with Chinese online retailer JD.com Inc. in investing in discount shopping website Vipshop Holdings Ltd. With $604 million, Tencent will hold a 7 percent stake in New York Stock Exchange-listed Vipshop, while JD.com will pay $259 million to increase its stakes in Vipshop to 5.5 percent from 2.5 percent.
JD.com is being advised by Skadden’s China practice chief Julie Gao on the deal. Gao also acted for the company on its 2014 listing on Nasdaq.
Latham & Watkins Hong Kong corporate partner Frank Sun is representing Vipshop, the third biggest player in China’s $150 billion business-to-consumer online retail market after Alibaba’s Tmall.com and JD.com.
The deal is part of Tencent’s efforts to bolster online retail offerings in competition with archrival Alibaba Group Holding Ltd., China’s largest operator of consumer-facing e-commerce sites.
The three companies on this deal have previously collaborated. Tencent, with a 20 percent stake, is the largest shareholder of JD.com, which already holds a 2.5 percent stake in Vipshop.