(Yicai Global) April 12 -- Tianjin Tianhai Investment Co., a unit under cash-strapped conglomerate HNA Group Co., plans to issue new shares to fully acquire the firms behind e-commerce platforms Dangdang Kewen and Beijing Dangdang for CNY7.5 billion (USD1.2 billion).
Tianhai will issue 652 million shares at CNY6.23 (USD1.2) a piece to raise CNY4.06 billion, and use cash to make up the remainder, it said in a statement on April 10. It first announced plans to buy into Beijing Dangdang Kewen E-Commerce Co. and Beijing Dangdang Information Technology Co. on March 9.
Dangdang, which delisted from the New York Stock Exchange late 2016 in a deal worth USD536 million, is an e-commerce marketplace that competes with Amazon Inc.’s China unit and JD.Com Inc., the second-largest online retailer in the country. The firm was worth more than USD2 billion when it listed in 2010.
The investment contrasts a string of divestments made by HNA Group after a USD50-billion international shopping spree that spanned the past two years and sparked a regulatory investigation into its borrowing and ownership structure. The overstretched group has sold off its flagship development in its hometown Haikou, Hainan province, dumped properties in Hong Kong and New York, and let go of stakes in Hilton Grand Vacations Inc. and Deutsche Bank AG.
Copy-edited by James Boynton