Leading tech giant Google, an arm of Alphabet Inc, announced that it will invest half a billion dollars in JD.com, which is China’s second largest e-commerce player.
Google will invest $550 million in cash into JD.com as a part of a strategic deal, according to the companies, which both issued a statement. In exchange of the investment, Google will be receiving over 27 million newly-issued JD.com Class A ordinary shares, coming at an issue price of $20.29 per share.
That figure is equal to $40.58 per American depository share based on the volume-weighted average trading price across the preceding 10 trading days. JD.com listed American depository shares in its group company on the Nasdaq in 2014.
The two technology companies stated that they would cooperate to develop retail infrastructure that can better improve and personalize the shopping experience while reducing the friction in a number of markets, which will include Southeast Asia.