Vipshop gets $863 million cash infusion

Vipshop receives $863M from Tencent and JD

Vips receives $863M investment.
Vips receives $863M investment.

Tencent,, Vipshop announce investment, business cooperation – Tencent Holdings (TCEHY), (JD), and Vipshop (VIPS) jointly announced that Tencent and have entered into definitive agreements with Vipshop, such that Tencent and will invest an aggregate amount of approximately $863M in cash in Vipshop at the closing of the transaction.

Pursuant to the share subscription agreement, Tencent and will subscribe for newly issued Class A ordinary shares of Vipshop in the amount of approximately $604M and approximately $259M, respectively.

The purchase price will be $65.40 per Class A ordinary share, which is equivalent to $13.08 per American Depositary Share of Vipshop, five of which represent one Class A ordinary share.

The purchase price represents a 55% premium over the closing price of the ADSs as of the last trading day on December 15.

The transaction is expected to close in the near future, subject to customary closing conditions. Upon the closing, Tencent and will beneficially own, taking into account any existing holding, approximately 7% and 5.5%, respectively, of Vipshop’s total issued shares.

The Class A ordinary shares issued to Tencent and will be subject to a two-year lock up restriction. Tencent and will have the right to appoint a director and an observer, respectively, to Vipshop’s board of directors during the two-year lockup period.

After the end of the lock-up period, for so long as Tencent and hold approximately 12% and 8%, respectively, of Vipshop’s total issued shares, or otherwise by mutual agreement with Vipshop, they will maintain director and board observer rights.

Concurrently with the entry of the share subscription agreement, Tencent and have entered into business cooperation agreements with Vipshop, effective upon closing, establishing a cooperative relationship among Tencent, and Vipshop.

Under these agreements, Tencent will grant Vipshop an entry on the interface of Weixin Wallet enabling Vipshop to utilize traffic from Tencent’s Weixin platform, and will grant Vipshop entries on both the main page of’s mobile application and the main page of its Weixin Discovery shopping entry, and will assist Vipshop in achieving certain GMV targets through’s platform.

VIPS closed at $8.44. It last traded at $12.48.


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This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

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