HNA Group to buy e-commerce site Dangdang.com
Purchase of mainstream e-commerce platform by HNA subsidiary Tianhai Investment to include cash and shares
Tianhai Investment, an HNA Group subsidiary, is planning to acquire a 100% stake in both Dangdang.com and Dangdang Kewen, one of the mainstream e-commerce platforms in China, for a price of 7.5 billion yuan (US$1.2 billion), The Paper reported.
In the announcement issued on Wednesday, Tianhai Investment said the evaluation work has not been completed and payment methods are expected to include the issuance of shares and cash payments.
Of the latter amount, 4.06 billion yuan will be issued as shares, and 3.44 billion yuan will be paid in cash.
It is worth noting that the acquisition price, 7.5 billion yuan, exceeds 50% of Tianhai Investment’s net assets.
Following the transaction, Dangdang will become a wholly-owned subsidiary of Tianhai Investment and return to the A-share capital market.
By the end of 2017, operating income at Dangdang and Dangdang Kewen were 10.34 billion yuan, an increase of 8.3% year-on-year.
Net profit attributable to shareholders of the parent company was 362 million yuan, a year-on-year increase of 173%.