Tianjin Tianhai plans a Dangdang takeover
In this article (5)
Tianjin Tianhai Investment, a unit of Chinese conglomerate HNA Group, plans to acquire Chinese company Dangdang’s e-commerce assets for RMB7.5 billion (US$1.19 billion).
The acquisition will allow Tianjin Tianhai to tap into China’s e-commerce market via Dangdang, which is known for its online marketplace for books, clothes, furniture and other consumer goods.
Tianjin Tianhai plans to buy 100 per cent stakes in two e-commerce companies owned by Dangdang, a rival to Amazon in China, via cash and an issue of shares, it says in a filing to the Shanghai stock exchange.
Trade in Tianjin Tianhai’s shares were suspended in January because of a restructuring by owner HNA.
The shares remain suspended.
HNA Group is under scrutiny over its opaque ownership and tactics during buying spree over the past few years.
Tianjin Tianhai’s deal requires approval from authorities such as the China Securities Regulatory Commission.
Questions & Answers
Q.What is Tianjin Tianhai’s main objective in acquiring Dangdang’s e-commerce assets?
What is Tianjin Tianhai’s main objective in acquiring Dangdang’s e-commerce assets?
Tianjin Tianhai aims to enter China’s e-commerce market through this acquisition. Dangdang is recognised for its online marketplace selling books, clothing, furniture, and other consumer items.
Q.How will Tianjin Tianhai fund the acquisition of Dangdang’s e-commerce assets?
How will Tianjin Tianhai fund the acquisition of Dangdang’s e-commerce assets?
Tianjin Tianhai plans to fund the acquisition of Dangdang's two e-commerce companies through a combination of cash and the issue of new shares. This was stated in a filing to the Shanghai stock exchange.
Q.What external approvals are needed for Tianjin Tianhai to complete this deal?
What external approvals are needed for Tianjin Tianhai to complete this deal?
The acquisition requires approval from various authorities, including the China Securities Regulatory Commission. This step is necessary for Tianjin Tianhai to proceed with the planned takeover.
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