(Reuters) -Gaming and social media giant Tencent will distribute most of its JD.com stake worth HK$127.69 billion ($16.37 billion) to its shareholders, losing its title as the e-commerce firm’s top shareholder.
Tencent said on Thursday it was the right time to transfer its stake given that JD.com has reached a stage it can self-finance its own growth. The owner of WeChat will see its stake fall to 2.3% from around 17%.
JD.com, in a separate statement, said it would continue to work with Tencent, including on their strategic partnership agreement.
Eligible Tencent shareholders will be entitled to one share of JD.com for every 21 shares they hold and in total Tencent will distribute 457.3 million shares.
After the transfer, Walmart will become JD.com’s largest shareholder, according to Refinitiv ownership data.
($1 = 7.7996 Hong Kong dollars)
(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Subhranshu Sahu)
