Just 40 days after Pinduoduo’s strategic investment in veteran electronics chain Gome, its major e-commerce rival JD.com Inc. announced a similar move Thursday to buy $100 million worth of convertible bonds in the retailer, reported Caixin.
The bonds JD.com acquired, equivalent to about 2.8% of Hong Kong-listed Gome Retail Holdings Ltd.’s existing issued shares, will have an annual coupon rate of 5% with a tenure of three years and will be convertible at HK$1.25 ($0.16) per share, 37.91% higher than Gome’s closing price of 91 Hong Kong cents on the previous trading day.
The deal is not completed yet as it awaits trading and convertible share listing approval by the Stock Exchange of Hong Kong. JD.com and Pinduoduo are Nasdaq-listed companies.
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