Tuniu Reports $500 Mln Investment From A Group Of Investors

(RTTNews) - Tuniu Corp. (TOUR), an online leisure travel company in China, said it has entered into definitive agreements with a group of investors for the issuance and sale of $500 million in newly issued Class A ordinary shares in aggregate.

As part of the agreements, JD.com, Inc. (JD), an online direct sales company in China, will purchase a total of $350 million newly issued Class A ordinary shares of Tuniu through a combination of $250 million in cash and $100 million in resources as part of the two companies' jointly announced strategic agreement.

Additionally, certain other investors, including Ctrip Investment Holding Ltd., a subsidiary of Ctrip.com International, Ltd. (CTRP), will also buy newly issued Class A ordinary shares.

Each of the investors has agreed not to sell, transfer or dispose of any shares acquired in the transaction for six months after the closing.

The purchase price will be $16.00 per ADS, or the equivalent of approximately $5.33 per Class A ordinary share, which represents the approximate average closing trading price of the company's ADSs for the 20 trading days prior to the signing of the agreements.

Following the transaction, JD.com will hold approximately 27.5 percent of the company's outstanding shares and become the company's largest shareholder.