JD.com to invest $800 million in Dada

JD.com Inc.
JD,
-0.85%
and Dada Nexus Ltd.
DADA,
+8.70%
announced Monday morning that JD.com plans to invest $800 million in newly issued ordinary shares of Dada, an on-demand delivery platform. JD.com intends to purchase the shares at a price equivalent to Dada’s Friday closing price. After the transaction is complete, JD.com will hold about 51% of Dada’s issued and outstanding shares, when considering the company’s prior holdings as well. Dada Group Chief Executive Philip Kuai said in a release that Dada intends to “further deepen strategic cooperations with JD.com.” Dada’s U.S.-listed shares are up 17% in premarket trading Monday. They’ve lost 23% over the past three months as JD.com’s U.S.-listed shares have gained about 5%.