: JD.com proposes spinning off JD Property and JD Industrials through separate Hong Kong listings
JD.com Inc. JD disclosed Thursday the planned spinoffs of two business units. The Chinese e-commerce giant said that it intends to spin off its JD Property and JD Industrials businesses through separate listings on the Hong Kong Stock Exchange. The company sees the spinoffs as ways to help investors better value the diverse JD Group e-commerce business as well as the more targeted business units that would be spun off through the arrangement, according to materials provided in a filing with the Securities and Exchange Commission. JD.com noted that after the proposed spin-offs, it would continue to indirectly hold more than 50% of the shareholdings of JD Property and JP Industrials, meaning that both would remain subsidiaries of the company. JD.com’s U.S. listed shares were up about 6% in morning trading Thursday. The company’s announcement comes after Alibaba Group Holding Ltd. earlier in the week disclosed that it planned to reorganize into six business groups that would have the potential to each pursue initial public offerings.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.