JD.com to Acquire European Retailer CECONOMY in $2.B Takeover Bid

JD.com Inc. (NASDAQ:JD) is one of the best upside stocks to invest in now. On July 30, JD.com announced a decision to make a voluntary public takeover offer for all shares of CECONOMY AG. CECONOMY is the parent company of European consumer electronics retailers MediaMarkt and Saturn. The offer is being made through a wholly-owned subsidiary, called JINGDONG Holding Germany GmbH (the Bidder), for a cash consideration of EUR 4.60 per share.

The Bidder and CECONOMY have signed an investment agreement related to the takeover offer and their future cooperation. The Bidder also has agreements with several CECONOMY shareholders, who have irrevocably committed to accept the offer for a total of 31.7% of the shares. This includes a 3.81% stake from CECONOMY’s largest shareholder group, Convergenta Invest GmbH.

Post-takeover, Convergenta will hold 25.35% of the CECONOMY shares. This secures a combined shareholding of 57.1% for JD.com’s future partners and the company itself before the offer’s launch. CECONOMY’s Supervisory Board and Management Board are in full support of the takeover. JD.com plans to contribute its advanced technology, e-commerce expertise, and logistics capabilities to strengthen CECONOMY’s business, which currently operates over 1,000 retail stores in 11 countries.

JD.com Inc. (NASDAQ:JD) is a supply chain-based technology and service provider in the People’s Republic of China. It operates through three segments: JD Retail, JD Logistics, and New Businesses.

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Disclosure: None. This article is originally published at Insider Monkey.