Orrick, Herrington & Sutcliffe is advising on Chinese travel website Tuniu Corp’s sale of $500 million in new shares to a group of investors led by JD.com, the second largest ecommerce site in China.
Tuniu sold $350 million of Class A ordinary shares to JD.com at $5.33 each, making the latter the largest shareholder with a 27.5 percent stake in Tuniu.
As part of the deal, JD.com, which has close to 100 million active customer accounts, will hand over its travel site to be exclusively operated by Tuniu. JD.com will forgo commission on its Tuniu-operated site, but collect fees on flight and hotel bookings made through Tuniu via other JD.com pages.
An Orrick team led by Shanghai-based corporate partner Jie (Jeffrey) Sun and consultant Chen Lu is advising JD.com on the deal.
The other investors include affiliates of Ctrip.com, DCM V, Hony Capital, Sequoia Capital and Temasek Holdings.
The partnership with one of China’s leading travel sites could boost JD.com’s fledgling and potentially lucrative travel business. Like it recent agreement with Bitauto on automotive-related content and service, JD.com said the partnership would help its goal to create a one-stop shopping platform for its Chinese consumers.
The transaction is expected to close in the second quarter of 2015, subject to customary closing conditions.