Suning.com sells 23 per cent stake to Shenzhen International and Shenzhen Kunpeng
- Suning.com shares rise in Shenzhen after the proposed deal was announced
- Shenzhen International, a logistic and infrastructure facilities operator, said the acquisition would allow more logistic collaboration with Suning.com
Shares of Shenzhen-listed Suning.com surged 10 per cent on Monday after Shenzhen International Holdings and Shenzhen Kunpeng Equity Investment Management agreed to acquire 23 per cent of the online electric appliance retailer for 14.8 billion yuan (US$2.28 billion).
Suning.com opened at 7.7 yuan on Monday, while Hong Kong-listed Shenzhen International also edged up by as much as 3.43 per cent to HK$13.28.
On Sunday, Shenzhen International, a logistic and infrastructure facilities operator, announced it would buy 744.8 million, or 8 per cent, of Suning.com shares, while Kunpeng Equity proposed to acquire another 1.39 billion, or 15 per cent of shares. The purchase price would be 6.92 yuan per share, according to company filings to the Hong Kong stock exchange.
At the proposed price, the acquisition will cost Shenzhen International 5.15 billion yuan and Kunpeng Equity 9.66 billion yuan.
Kunpeng Equity, a strategic fund management platform focusing on equity investment, is fully owned by the state-owned Assets Supervision and Administration Commission of the People’s Government of Shenzhen Municipality. It was set up to promote industrial development in the southern city of Shenzhen.