JD and Dada Announce Equity Investment
March 22 2021 - 8:25AM
JD.com, Inc. (NASDAQ: JD, "JD.com" or “JD”) , China’s leading
technology driven e-commerce company, and Dada Group (NASDAQ: DADA,
“Dada”), China’s leading local on-demand delivery and retail
platform, today jointly announced that JD.com, through its
subsidiary, entered into a share purchase agreement with Dada,
under which JD.com has agreed to invest a total of US$800 million
in newly issued ordinary shares of Dada, at a per share price that
equals to the closing trading price of Dada’s ordinary shares on
the Nasdaq Global Select Market on March 19, 2021, the last trading
day prior to the date of the share purchase agreement. Following
the transaction, JD.com will hold, taking into account its existing
holding, approximately 51% of Dada's issued and outstanding shares.
The closing of the transaction is subject to satisfaction of
customary closing conditions and procedures, including applicable
governmental filings, and there can be no assurance that clearance
from applicable governmental authorities will be granted. JD.com
has agreed not to sell, transfer or dispose of any shares acquired
in the transaction for six months after the closing.
The share issuance is exempt from registration under the
Securities Act of 1933, as amended, (the "Securities Act") pursuant
to Section 4(a)(2) of the Securities Act regarding transactions not
involving a public offering.
“We are excited to further deepen strategic cooperations with
JD.com,” commented Mr. Philip Kuai, Chairman and Chief Executive
Officer of Dada Group. “Leveraging JD's devoted strategic support,
we will better fulfill demands for local on-demand retail and its
delivery on JD, covering various scenarios and categories, and
expand our omni-channel cooperation with JD. Together with JD, we
will continue to provide consumers with superior experience,
empower retail and brand partners and achieve a win-win cooperation
for all.”
“We have long maintained close cooperation with Dada Group to
jointly provide integrated online and offline solutions for the
retail industry, and to enhance the intelligent digitalization
capabilities of our partners,” said Mr. Lei Xu, CEO of JD Retail.
“Our increased investment will facilitate both sides to promote the
expansion of on-demand retail and delivery, as well as omni-channel
collaboration. This will help us to further diversify our retail
services, to enable our partners, especially, real economy
enterprises, to continue to optimize cost, efficiency and
experience and accelerate their intelligent digital transformation,
and to deliver faster, better and richer services for
consumers.”
Safe Harbor Statement
This press release contains statements that may constitute
“forward-looking” statements pursuant to the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as “will,” “expects,” “anticipates,” “aims,”
“future,” “intends,” “plans,” “believes,” “estimates,” “likely to”
and similar statements. Among other things, quotations in this
announcement, contain forward-looking statements. Dada may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (the “SEC”),
in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about Dada’s beliefs, plans
and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: Dada’s strategies; Dada’s future business
development, financial condition and results of operations; Dada’s
ability to maintain its relationship with major strategic
investors; its ability to provide efficient on-demand delivery
services and offer quality on-demand retail experience; its ability
to maintain and enhance the recognition and reputation of its
brands; general economic and business conditions globally and in
China and assumptions underlying or related to any of the
foregoing. Further information regarding these and other risks is
included in Dada’s filings with the SEC. All information provided
in this press release is as of the date of this press release, and
Dada does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
About JD.com
JD.com is a leading technology driven e-commerce company
transforming to become the leading supply chain-based technology
and service provider. The company's cutting-edge retail
infrastructure seeks to enable consumers to buy whatever they want,
whenever and wherever they want it. The company has opened its
technology and infrastructure to partners, brands and other
sectors, as part of its Retail as a Service offering to help drive
productivity and innovation across a range of industries.
About Dada
Dada is a leading platform of local on-demand retail and
delivery in China. It operates JDDJ, one of China’s largest local
on-demand retail platforms for retailers and brand owners, and Dada
Now, a leading local on-demand delivery platform open to merchants
and individual senders across various industries and product
categories. The Company’s two platforms are inter-connected and
mutually beneficial. The Dada Now platform enables improved
delivery experience for participants on the JDDJ platform through
its readily accessible fulfillment solutions and strong on-demand
delivery infrastructure. Meanwhile, the vast volume of on-demand
delivery orders from the JDDJ platform increases order volume and
density for the Dada Now platform.
For investor and media inquiries, please
contact:
JD.com Investor Relations Ms. Ruiyu Li +86
(10) 8912-6805 Email: IR@JD.com
Dada Nexus LimitedInvestor RelationsMs.
Caroline DongE-mail: ir@imdada.cn
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