(Yicai Global) May 16 -- Toiletries-maker Lafang China Co. [SHA:603630] will spend CNY34 million (USD 5.4 million) to buy into MissJoy.Cn, a beauty blogging platform developed by Guangzhou-based cosmetics firm Mestract Bio-Tech Co., as part of efforts to tap into its popular social media channels.
After the deal, Lafang will become Mestract Bio-Tech's second-largest shareholder with a 26.8 percent stake, according to a statement from the Shantou-based firm, which is best known for its Lafang, Yujie, Binchun, Meiduosi, and Shengfeng brands.
The target company operates multiple social media accounts on Weibo and WeChat targeting university students aged between 16 and 30, young professionals and beauty-conscious women who are new to makeup. Lafang aims to raise its profile by tapping into its popular accounts which boast more than 6 million followers.
MissJoy, which also engages in marketing and e-commerce, has a stable core management team and strong profitability, thereby boasting good value for investors, said the statement, adding that with the deal, Lafang China will be able to diversify its product mix, improve branding and marketing efficiency as well as expand sales channels.
Editors: Emmi Laine, William Clegg