JD to acquire major stake in Jiangsu Five Star
Online shopping giant JD.com said it will acquire a 46-percent stake in Jiangsu Five Star for 1.27 billion yuan (US$187 million) to strengthen its home appliance business and online-to-offline synergy.
The acquisition will be made by a combination of cash and debt-assumption from seller Jiayuan Chuangsheng Holdings Co. JD will also provide a 1.03 billion yuan loan to Jiayuan Chuangsheng.
JD and Jiangsu Five Star will leverage their respective expertise and strengths to explore new growth opportunities in innovative retail strategy and aim to provide consumers with a fully-integrated, smart online-to-offline shopping experience, according to a stock exchange filing.
Five Star has a wide foothold in the Yangtze River delta region with more than 220 brick-and-mortar stores focused on home appliances and consumer electronics, which can help JD further strengthen its position in these segments.
JD will become Five Star's second largest shareholder behind Jiayuan, which will continue to hold a 47-percent stake in the retailer after the deal's completion.
JD's collaboration with Five Star dates back to 2017. Five Star already operates a flagship store on JD's online marketplace.
The two parties have also opened offline stores offering the latest in home electronics and gadgets.
