Ali Will Subscribe For HK $828 Million E-House Shares, And Both Sides Have Reached Strategic Cooperation

It is reported that E-House China and Alibaba Group recently signed a strategic cooperation framework agreement. The two sides will carry out in-depth cooperation in the fields of online and offline real estate transactions, digital marketing and post transaction related services, so as to promote the real estate service industry to realize full digitalization and intelligence.

According to E-House, the total subscription amount of E-House's shares with Alibaba Group will be 28.8 billion Hong Kong dollars.

After the increase, alibaba will hold about 8.32% of E-House's shares. E-House and Ali signed a subscription agreement for convertible notes at the same time. About 26% of the shares of E-House will be transferred.

At the same time, E-House will also sign an equity transfer agreement with Zhou Xin, its largest shareholder, and related companies under its control. Accordingly, E-House will purchase 51925996 Leju Holding Co., Ltd. (Leju) shares held by Zhou Xin, and issue 166918440 shares to Zhou Xin for settlement.

In addition, E-House signed an equity transfer agreement with sina company, according to which E-House will purchase 24475251 Leju shares held by Sina and distribute 78676790 E-House shares to Sina for settlement. After the completion of these two transactions, E-House will become the controlling shareholder of Leju, holding about 56.19% of the shares.

Data show that E-House (China) enterprise Holding Co., Ltd. is a real estate trading service provider, mainly providing first-hand real estate agency services, real estate data and consulting services, and real estate brokerage network services.

The company said in its announcement that the Board considers the subscription as an appropriate way for the company to strengthen its capital base and provide additional funds to support its continued business development. The group foresees the future synergy and growth of the group from strengthening the cooperation with Alibaba group, as well as the chain benefits that will be brought to the group's business in the long run.

In the cooperation, E-House and Alibaba will also jointly establish a digital marketing platform that can provide services for consumers, real estate enterprises and ecological partners. In addition, E-House will also use the platform and technical resources provided by Alibaba to accelerate the digital process of marketing and trading.