(Yicai Global) Nov. 16 -- JD Group Inc. is tentatively planning to transfer all its equity in JD Financial Group, Inc. to transform it into an enterprise with only Chinese shareholders, in a bid to engage in financial services requiring government permits, and better make use of funding in China's capital market. After the transaction, JD Group will no longer have legal ownership or effective control of JD Financial Group.
JD Group and JD Financial Group plan to sign a series of agreements on sales, business permits and business cooperation. JD Group will obtain cash consideration calculated per the fair market value from investors partaking of this deal, and will obtain 40 percent of JD Financial Group's pre-tax profits after it achieves an accumulation of these. Also, relevant Chinese laws and regulations in China permitting, JD Group will be entitled to transfer its rights in JD Finance into 40 percent of the company's equity.
JD.com, Inc. [NASDAQ:JD] is a subsidiary of JD Group Inc. listed in the US.