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Tianjin Tianhai goes shopping with Dangdang
Posted on Thursday, 12 April 2018 09:25
HNA’s investment vehicle, perhaps best known for acquiring Ingram Micro in the US in 2016, is taking over the e-commerce operations of Dangdang for CNY 7.50 billion (USD 1.19 billion).
Tianjin Tianhai Investment said it will buy the entire capital of Beijing Dangdangwang Information Technology and Beijing Dangdang Kewen E-commerce for CNY 4.06 billion in shares and CNY 3.44 billion in cash.
Separately, the company intends to tap no more than ten investors for as much as CNY 4.06 billion by issuing stock that equates to 16.7 per cent stake.
Zephyr, the M&A database published by Bureau van Dijk, shows this equity dilution would be the 16th largest capital increase announced by a mainland-incorporated company so far this calendar year.
Shares in Tianjin Tianhai – as well as in six other subsidiaries of acquisitive debt-riddled conglomerate HNA - have been suspended from trading due to statements citing possible major asset restructurings.
Dangdang is a marketplace that started out as an online bookseller before expanding into areas such as food and electric appliances, among other things, to better compete against the likes of Amazon China and JD.com.
Tianjin Tianhai has grown from a traditional marine shipping company into a modern logistics provider with investments and operations across a range of market segments, including supply chain management and financial services.
The Shanghai-listed group uses artificial intelligence, big data and cloud computing to scale up and improve operations – which is where Dangdang comes in.
As an established domestic marketplace, the platform brings with it experience in managing e-commerce customers and leveraging big data to support activities.
In the first nine months of 2017, Tianjin Tianhai booked revenue of CNY 223.89 billion and net profit attributable to shareholders of CNY 121.19 million.
© Zephus Ltd