JD.com, Inc. (NASDAQ: JD) and Dada Nexus Limited (NASDAQ: DADA) both have shared the update on investment in Dada. Both the companies have confirmed JD.com’s investment in Dada has secured all the necessary regulatory authorizations. It is currently anticipated that this transaction will finalize by end of February 2022.
Dada will issue a specified number of ordinary shares of Dada to JD.com in exchange for $546 million in cash and certain strategic resources from JD.com at the execution of this transaction. JD.com aims to integrate the financial results of Dada into its consolidated financial statements. JD will take into consideration its current shareholding of roughly 52 percent of Dada's issued and outstanding shares.
Earlier, JD.com, through its subsidiary, inked a share purchase agreement with Dada. As per the agreement, JD.com has decided 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 before the date of the share purchase agreement.
Dada has earned recognition as China's most popular on-demand retail and delivery platform. It runs JDDJ which is one of China's major local on-demand retail platforms for retailers and brand owners, as well as Dada Now which is a prominent local on-demand delivery platform for merchants and individual senders across a variety of industries and product categories. The two platforms of Dada are linked and mutually helpful.