Wanda, Tencent, Gaopen join hands for JV

Dalian Wanda Group, Tencent Holdings Ltd and Gaopeng announced on Wednesday to set up a new internet technology joint venture.

Wanda Commercial Management Group, the commercial property arm of the property conglomerate owned by Chinese billionaire Wang Jianlin, will hold 51 percent shares of the new company, which will integrate both online and offline retail businesses, according to a statement by Wanda.

China's internet giant Tencent will take 42.48 percent of the new company and Gaopeng, a joint venture by US group-buying website Groupon and Tencent, will hold the remaining 6.52 percent.

Qi Jie, president of Wanda Commercial Management Group, will serve as chairman of the new JV while Gao Xia, CEO of Gaopeng, will act as CEO.

Ffan and other parts of Wanda Internet Technology Company's business will be injected into the new JV. Tencent will provide the JV with additional resources, including access to online traffic, while Gaopeng will integrate businesses, such as electronic invoicing, into the JV, said the statement.

Wanda Commercial Management Group, the world's biggest commercial property company, sold 14 percent of its stake to investors initiated by Tencent for 34 billion yuan in January.

The investors also include Suning Holdings Group, one of the largest home appliances retailers in China; China's second-largest e-commerce player, JD.com Inc and Hong Kong-listed property conglomerates Sunac China Holdings Ltd.