China

Giant Interactive Group Plans to Acquire 40% of Chinese P2P Firm Shenzhen Wangjin for RMB 819 Mln

Summary:

  • Giant Interactive Group (002558.SZ) recently announced that its wholly-owned subsidiary Shanghai Jujia Network Technology Co., Ltd. plans to acquire a 40% stake in Shenzhen Wangjin Financial Information Services Co., Ltd. for RMB 819 million, as reported by Ifeng Finance.
  • In addition, the seller of the stake has transferred 11% of the voting rights in the company to Shanghai Jujia.

Why It Matters:

  • After the deal,  Shanghai Jujia will hold a 40% stake in Shenzhen Wangjin and 51% of the voting rights in the company.
  • Shenzhen Wangjin operates a popular Chinese P2P platform, Touna.cn, which was launched in 2012.
  • Giant Interactive is principally engaged in the development, production and sales of Internet games. The company went public on the NYSE in 2007 and then was privatized in 2014. Later, the company completed a back-door listing in the Chinese mainland market. This is not the first time that Giant Interactive has shown an interest in Internet Finance companies. For example, the company indirectly holds a 5.14% stake in Alibaba’s (BABA.NYSE) financial arm Ant Financial.