China’s JD spins off cloud and AI businesses to fintech unit
(Reuters) – Chinese e-commerce firm JD.com Inc said on Wednesday it had sold JD Cloud and artificial intelligence business to its financial technology unit for a combined valuation of 15.7 billion yuan ($2.40 billion).
The unit, JD Digits, will issue ordinary shares to JD.com as part of the transaction, taking JD.Com’s stake to about 42%. (bit.ly/3dkKavz)
The plans were originally announced in December last year. During the same month, JD spun off its health unit and listed it on the Hong Kong stock exchange. (bit.ly/2Pk7Wje)
JD.com has been doubling down on its core e-commerce business where it competes with Alibaba Group Holding and Pinduoduo Inc.
($1 = 6.5532 Chinese yuan renminbi)
Reporting by Chavi Mehta in Bengaluru; Editing by Shinjini Ganguli and Sriraj Kalluvila