US retailer Walmart is seeking to raise up to $3.74 billion by selling its stake in Chinese e-commerce firm JD.com , according to a term sheet seen by Reuters on Wednesday.
Walmart is offering 144.5 million American depositary shares in the price range of $24.85 to $25.85, the term sheet shows, and Morgan Stanley is the broker-dealer of the offering.
Walmart said in a statement that JD.com had been a valued partner over the past eight years, and the US retailer was committed to a continued commercial relationship with the Chinese e-commerce giant.
"This decision allows us to focus on our strong China operations for Walmart China and Sam's Club, and deploy capital towards other priorities," Walmart said.
JD.com's Hong Kong-listed shares fell more than 10 per cent in early trading on Wednesday. US-listed shares dropped 10 per cent in after-market trading on Tuesday to $25.50 after Bloomberg first reported the share sale plan.
JD.com declined to comment. Morgan Stanley did not immediately respond to Reuters' request for comment.
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Walmart is the largest shareholder of JD.com and owns a 5.19 per cent stake in the e-commerce company, according to LSEG data.
The partnership between the two companies began in 2016, when Walmart sold its Chinese online grocery store, Yihaodian, in return for a 5 per cent stake in JD.com.
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