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Easyhome Investment Holdings Group, a Chinese home decor giant, is considering to take a Wuhan-based shopping mall operator’s buyout offer to skip the due diligence that an initial public offering would entail and instead get backdoor-listed.
Zhongnan Commercial will pay a price between CNY36.3 billion to CNY38.3 billion (USD5.3 billion to USD5.6 billion) for Easyhome’s Beijing-based core retail business unit Easy Home New Retailing, the listed buyer said in a statement yesterday. The move would open the door for Easyhome to access Shenzhen’s capital market.
Some 16 investors, including Alibaba Group Holding and Taikang Life Insurance invested CNY13 billion to purchase 36 percent of Easy Home New Retailing’s shares last February. Easyhome has a 42 percent stake in the subsidiary and Alibaba is the third-largest shareholder with an almost 10 percent stake.
Easyhome would take over the reins from the biggest shareholder Wuhan Shanglian and actual controller Wuhan State-Owned Assets Management upon transaction. The furniture firm’s founder Wang Linpeng would become Zhongnan Commercial’s actual controller.
Founded in 2015, Easy Home New Retailing has increased its operating income steadily. From October 2015, revenues rose 19 percent to CNY7 billion in October 2018, according to earnings reports. It has a CNY36 billion market cap.
Easyhome operates over 220 home furnishing stores across 29 provinces in China.
Zhongnan Commercial [SZ: 000785] closed at CNY7.39 (USD1.1) yesterday, up 9.97 percent.
Source: yicaiglobal.com
