JD.com to issue shares worth $220 million to Tencent for WeChat access

FILE PHOTO: JD.com sign is seen at the World Internet Conference (WIC) in Wuzhen

(Reuters) -China’s JD.Com Inc said on Wednesday it would issue shares worth $220 million to investor Tencent Holdings Inc over a three-year period to access certain services on the latter’s WeChat platform.

The deal follows Tencent’s sale of a $16.4 billion stake in JD.com to Walmart Inc last year and extends an existing partnership with the WeChat owner.

Tencent, which first invested in JD.com in 2014, owns 2.7% of outstanding Class A shares of the company as of March 25, according to a regulatory filing.

(Reporting by Yuvraj Malik and Akash Sriram in Bengaluru; Editing by Anil D’Silva)