58 city and go to fair nets why choose merger
58 city announced today a strategic share of another category information website Ganji, the two sides will jointly set up 58 fair market limited. 58 city will be cash and stock to get 43.2% shares of Ganji (fully diluted), including 34 million common shares (17 million copies of ADS) and $412 million 200 thousand in cash.
in accordance with the agreement, the two companies will maintain brand independence after the merger, and the website and the team will continue to maintain independent development and operation.
announcement also shows that Tencent will be 52 U. S. dollars per ADS price of 400 million U. S. dollars worth of 58 city new shares. After this round of additional investment, Tencent shares will reach 25.1%.
why go to the market network to accept 58 city investment?
this year, the market network has been coming to seek a new round of financing news, and before last August, Ganji CEO Yang Haoyong has publicly announced that the project will be launched around June 2015 IPO.
fair market since the second half of last year, began in the car, real estate and other fields frequently test the new business model, these moves are regarded as market ready before the impact of the preparatory action.
, however, insider told Tencent technology that investors in the market are not optimistic about the company’s listing prospects, so it is a powerful match between the market and the 58 city.
earlier, Tencent technology has also reported that the push to promote the transaction is likely to be tiger fund. Tiger Fund in the market and 58 city on both sides of the chips, and actively lobbying the two sides to merge.
in accordance with the terms of the transaction, 58 city to 17 million copies of ADS and 412 million 200 thousand U.S. dollars in cash, get 43.2% shares of ganji. Tencent in accordance with the subscription of 58 city shares of $52 calculated, Ganji valuation in this round of financing should be $3 billion.
ganji.com had a total of five round of financing, including the 2009 bluerun A round of investment of $8 million; in 2010, NOKIA growth partners and bluerun B round of investment of $20 million; in 2011, today the capital and Sequoia capital invested $70 million C round; from 2012, CITIC Industrial Fund. The total size of 90 million OTTP and the two rounds of financing at $D round of financing. In August 2014, the market won the E round of financing, the total financing of more than 200 million U. S. dollars, the investment for the Tiger Fund and Carlyle group.
accepted the 58 city’s strategic investment, means that two classified information platform for many years of intense competition is coming to an end. As the number one and second company in the field, strategic cooperation will receive an absolute share of the classified information market.
58 city interested in going to market?