E-House’s open strategy to acquire an 85% stake in Tmall Haofang
SHENZHEN, CHINA, May 14, 2021 - (ACN Newswire via SEAPRWire.com) - On April 28, E-House China Enterprise Holdings Co., Ltd. (2048.HK) announced it had acquired an 85% stake in Tmall Haofang, through an issue of 248 million new E-House shares to Alibaba (NYSE: BABA; 9988.HK). At HK$ 7.50 per share, it was the equivalent to an acquisition at HK$ 1.86 billion. At the same time, Alibaba, E-House founder and chairman Zhou Xin, and Alibaba's Yunfeng Fund invested HK$ 990 million, HK$ 1 billion and HK$ 500 million respectively at the price of HK$ 7.50 per share to subscribe to 132 million, 133 million and 66.67 million new shares of E-House.On completion, Tmall Haofang will become a wholly-owned subsidiary of E-House, while Alibaba will continue to grant exclusive Tmall permits to Tmall Haofang including the name, domain name, trademark and other brand attributes, and simultaneously provide technical, product, data, operational and other means of support.In terms of shareholding ratio, Zhou Xin will hold 22.84% shares of E-House to remain its largest shareholder, while Ali with 22.57% becomes the second-largest shareholder, and Yunfeng Fund 2.86%. Zhou Xin, as Chairman of the E-House Boar...
