Wal-Mart to sell China online unit to JD.com for a 5% stake

(June 20): Wal-Mart Stores Inc said on Monday it plans to sell its Chinese e-commerce business Yihaodian to Chinese online retailer JD.com Inc for a 5% equity stake in JD.com, a strategic alliance that aims to expand WalMart's reach in China to more customers.

Under the deal, JD.com will issue about 145 million new class A shares to Wal-Mart, worth about US$1.5 billion ($2 billion) at JD.com's current valuation.

Shares of Wal-Mart rose 26 cents, or 0.4%, to US$71.21 in afternoon New York Stock Exchange trading. JD.com's ADRs were up nearly 8%, or $1.56, at US$21.58.

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