Video service provider PPTV, Suning Commerce Group Co., Ltd. (SZSE: 002024), Hony Capital jointly declared that the latter two will put USD 420 million strategic investment in the former, being the biggest like investment ever kicked off by Suning Commerce Group.
Suning Commerce Group revealed that two investment institutions under control of Hony Capital and itself ink agreement for equity transfer with Softbank, SB China Venture Capital (SBCVC), BlueRun Ventures, Draper Fisher Jurvetson and top management shareholders of PPTV.
As agreed, strategic investors will take over equities in PPTV held by sellers for USD 420 million. Shares will be granted to future top management. 59.52% or USD 250 million will come from Suning Commerce Group and 29.9% or USD 170 million from Hony Capital, with the former taking a 44% stake as majority shareholder. Thus, the estimated value of PPTV will be higher than USD 320 million for the acquisition of PPS by Baidu Inc. (Nasdaq: BIDU).
Earlier, Softbank held a 35% stake in PPTV and other parties including SBCVC 22.86%.
