(Yicai Global) April 17-- Leshi Zhixin Electronic Technology Tianjin Co., the manufacturer of super TVs under the umbrella of cash-strapped Leshi Holding (Beijing) Co., has completed a new round of financing of CNY3 billion (USD478 Million) which it will announce soon.
Internet giant Tencent Holdings Ltd. may have participated in the investment, Business magazine China Entrepreneur reported today.
Leshi Zhixin will conduct a cash and debt financing based on its overall valuation of CNY9 billion, for which it has started preparations since early this year, its parent Leshi Internet Information & Technology Corp. Beijing [SHE:300104] said in statement on April 9.
Most of this financing came from friends of Sun Hongbin, former chairman of Leshi and the investment amount of each investor was negligible, an informed source close to Leshi revealed. Sun is now chairman of real estate developer Sunac China Holdings Ltd., which invested in Leshi early last year, and succeeded the financially-troubled former Leshi chairman and founder Jia Yueting.
Sun resigned as chairman of Leshi in March this year and admitted his investment in it was ill-advised at Sunac China's annual performance conference. However, despite his resignation, Sun still holds 8.56 percent stake in Leshi and is the second-largest shareholder after Jia.
Tencent Holdings Ltd. is seen as one potential investor in this funding round, Leshi said in a March 28 statement. Leshi Zhixin and Tencent reached a three-year internet TV cooperation project, providing video content services for the terminal products they jointly develop.
Several media reported yesterday that Faraday & Future Inc., a US electric vehicle start-up that Jia invested in, has received funding from another real estate giant, China Evergrande Group, and the latter has become its largest shareholder.
Leshi's share price spiked today on the news, climbing 9.9 percent to hit the daily limit up at CNY4.55 per share by 10:30 am in Shenzhen. Like the Energizer Bunny, the Leshi rollercoaster just keeps running and running.
Editor: Ben Armour