Weekly News Wrap: Alibaba, JD.com stock exodus intensifies; 7-Eleven operator picks ex-Uber executive

And Future Retail’s secured lenders reject $3.4b asset sale to Reliance.

From Bloomberg:

Investors are shifting more of their shares in Chinese e-commerce giants to the Hong Kong market, as Beijing’s efforts have yet to dispel concerns over the companies’ eligibility to remain listed on Wall Street.

About 77% of JD.com’s shares are circulating in Hong Kong’s clearing and settling system as of 19 April, versus 44% at the beginning of this year, according to Bloomberg calculations based on stock exchange data. Alibaba Group’s Hong Kong-listed share portion rose to 56% from 53% during the same period, the data show.

Most of this year’s conversions at Alibaba and JD.com took place this month, even as China modified a decade-old rule that potentially removed a key hurdle for U.S. regulators to gain full access to auditing reports.

While other companies that are listed in both Hong Kong and New York haven’t seen a similar scale of share conversion this year, the moves by shareholders at Alibaba and JD.com highlight that the U.S. delisting risk remains a concern.

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From Reuters:

Japanese retailer Seven & I Holdings, facing pressure from activist investors for structural reforms, has nominated a former executive of Uber Technologies to join its board of directors, the company said on Tuesday.

The operator of the 7-Eleven chain of convenience stores has named Elizabeth Miin Meyerdirk, a founding member of Uber Eats, who will join as a new outside director, pending approval from shareholders at a May 26 annual meeting.

Facing a shrinking domestic market, the company said this month that it would seek growth overseas, particularly in North America, and would also expand online shopping and delivery services in Japan.

Seven & I said this month it would revamp the board to ensure a majority came from outside the company. U.S.-based activist fund ValueAct Capital, which holds a stake of 4.4%, has been urging it to shake up the board and sell off underperforming assets.

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From Reuters:

Secured lenders of India's Future Retail have rejected a $3.4b sale of its retail assets, in a blow to the company which now faces the prospect of a bankruptcy process.

Nearly 70% of Future Retail's secured lenders rejected the deal to sell the group's assets to market leader Reliance Industries, it said in a stock exchange filing.

"The deal has fallen through. There is no coming back from here for Future," said a person with direct knowledge of the voting process.

The deal did not receive the requisite 75% favourable votes from secured creditors, the source added.

Reliance did not respond to requests for comment.

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