Marketing agency Shunya International buys half of Chinese live-streaming app Inke

A Shenzhen-listed communications agency is set to buy almost half of Beijing Milaiwu Network Technology, the owner of one of China’s most popular live-streaming platforms, in a deal worth just under 3 billion yuan (US$460 million).

Shunya International Brand Consulting (Beijing) said on Tuesday it will pay 2.89 billion yuan in cash for a 48.2 per cent stake in Beijing Milaiwu, which owns the Inke app.

The deal will make Shunya the biggest shareholder of the target company, according to a filing to the Shenzhen Stock Exchange.

Shunya, which listed in Shenzhen in February, achieved a profit of 58.7 million yuan last year. The company has sought loans from its four shareholders to complete the Inke deal, driving its debt ratio up to 76.2 per cent from 16.7 per cent. But it said it would still consider increasing its stake in Inke in the future.

Shunya, which offers a range of communication solutions, expects to build a “Live+” model through the purchase of Inke, optimising and aligning its business to live-streaming. “Inke will offer us a new type of communication solution,” said Shunya in a statement. “And we can improve Inke’s cashability at the same time.”

The deal would enable Shunya to diversify its main business, said Kuang Shi, an analyst from GF Securities.