- Leshi Internet Information & Technology Corp. (300104.SZ), has announced a RMB 700 million investment from Truly Electronics, reports Sohu.
- Truly Electronics will take a 2.34% stake in Leshi Zhixin, Leshi’s television manufacturing unit.
Why It Matters:
- Leshi has recently encountered serious liquidity issues, and this investment is the company’s latest effort to solve the problem. Since Leshi halted its stock from trading, the company has attracted more than RMB 10 billion in investments in Leshi Zhixin.
- The indicative valuation of Leshi from this round of investment is RMB 30 billion, much higher than the investment from Sunac China Holdings (1918.HK), which valued the firm at RMB 22 billion.
- Truly Electronics is also a Leshi supplier, and Leshi owes the company a large amount of money. Leshi has proposed that it exchange part of the debt for shares, and the deal might be an example for other suppliers.