- Leshi Internet Information & Technology Corp. (300104.SZ) announced recently that it plans to buy out Leshi Investment Management (Beijing) Co.’s financial assets and businesses from LePar, a marketing unit of Leshi Internet’s parent company LeEco, as reported by Cnstock.
- Leshi Investment Management also has some non-financial assets and businesses, but these are not involved in the deal.
- Based on Leshi Investment Management’s current valuation, the transaction amount is estimated to be up to RMB 3 billion.
Why It Matters:
- As early as August when Leshi Internet released its financial report for the first half of this year, the company said that it might be seeking an injection of well-performing assets from related-parties into itself.
- Leshi Internet said that the acquisition of Leshi Investment Management could help the company with fundraising and funds management, and it could also help resolve accounts receivable issues which have arisen with an increase in transactions between Leshi Internet and its related companies.
- The market believes that Leshi Internet has two underlying aims with this acquisition: one is to acquire a land lot in Chongqing owned by Leshi Investment Management; the other aim is to acquire a number of Leshi Investment Management’s licenses for conducting a variety of financial businesses.