Last weekend, auto e-commerce Yichang.com, Tencent and JD.com also announced that the three parties reached a strategic cooperation agreement. E-Car and its subsidiaries received a total investment of US$1.55 billion from Tencent and JD.
According to the agreement, Jingdong and Tencent invested about US$1.3 billion in the form of cash and exclusive resources. At the same time, E-Capital, a subsidiary of E-Car, which specializes in the auto finance Internet platform, will receive a total of US$250 million in cash investment from JD and Tencent.
According to the disclosure, the subscription price of the new common shares issued by Yiche.com is 73.31 US dollars per share (that is, 73.31 US dollars per American depositary share). Jingdong will invest approximately US$1.15 billion in the form of new shares issued by Yiche.com, including US$400 million in cash and approximately US$750 million in exclusive resources. Tencent will also invest $150 million in cash in the form of new shares issued by Easy Car. In addition, Jingdong and Tencent will subscribe Yixin Capital's newly issued Class A preferred shares for US$100 million and US$150 million, respectively.
The transaction is expected to be completed in the first half of this year. After the completion of the transaction, Jingdong and Tencent will hold 25% and 3.3% of the shares of Yiche.com respectively, and they will receive 17.7% and 26.6% of Yixin Capital respectively. Jingdong will also receive a seat on the board of the Yiche.com.
Li Bin, founder, chairman and CEO of Easy Car, said that Jingdong will authorize the exclusive operation of the new car and used car business on the Jingdong platform. The original business customers of the complete vehicle business on the Jingdong platform will be transferred to the car for continued service. JD.com will provide multi-dimensional strategic support including user, traffic, advertising resources, financial services and big data for the car-operated vehicle business. At the same time, through this cooperation, Easy Car will use the huge user resources and social platform from Tencent to strengthen the coverage of accurate car buyers.
Easy Car was established in 2000 and went public on the New York Stock Exchange at the end of 2010.
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