Sunac China Seeks Funds to Increase Stake in LeEco Units
Xu Wei
/SOURCE : Yicai
Sunac China Seeks Funds to Increase Stake in LeEco Units

(Yicai Global) Sept. 6 -- Sun Hongbin, chairman of Sunac China Holdings Ltd. [HKG:1918] and LeEco's cash-strapped listed arm, Leshi Internet Information & Technology Corp. Beijing [SHE:300104], has recently been visiting commercial banks to negotiate financing for to increase Sunac's stake in several LeEco units, Securities Daily reported on Sept. 6 citing an unnamed source.

Some banks were keen and even invited Sun in to hold talks, but others are holding a wait-and-see approach, the source said.

Through a subsidiary, Sunac holds an 8.61-percent stake in Leshi Internet, a 15-percent stake in Le Vision Pictures Co. and a 33.5-percent stake in Leshi Zhixin Electronic Technology Tianjin Co, which cost a total of CNY15 billion (USD2.28 billion).

One industry insider believes Sun has a plan for Leshi and will intensify its control over subsidiaries to facilitate development.

Since Sunac invested in Leshi, it has lost about CNY1.5 billion, its interim report shows. Sun still believes Leshi can become a great company.

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Keywords: Leshi , SUNAC , LEECO , Sun Hongbin