SB China Holdings and China Retail Fund have agreed to buy a combined 10 per cent stake in Goodbaby Child Products from Hong Kong-listed First Shanghai Investment. First Shanghai chairman Lao Yuanyi said the investment by the parties would bolster the mainland company's distribution network. If the transaction was approved, the parties would each invest about US$10 million in Goodbaby's e-commerce platform, Mr Lao said. First Shanghai Investment's shareholding in Goodbaby would also be cut to 50 per cent from 60 per cent. Mainland partners own the remainder of Goodbaby, which makes a diverse range of products for children. Mr Lao said the $20 million in proceeds from the transaction would be used to move Goodbaby's distribution and logistics systems on-line. 'The adoption of Internet technology would help traders bypass layers of brokers, have more efficient transaction and maintain an optimum inventory level,' Mr Lao said. Singapore-based SB China Holdings, a subsidiary of Japan-based Softbank, would also introduce its e-commerce technology to the company. The China Retail Fund is a direct investment fund advised by United States-based AIG Investment.