(Yicai Global) May 21 -- The television making unit under Leshi Internet Information and Technology Corp., the listed arm of debt-laden conglomerate LeEco, has named two of the other investors in a CNY3-billion (USD470-million) funding round that names JD.Com Inc. and Tencent Holdings Ltd. as participants.
Shenzhen TCL New Technology Co. and Ningbo Free Trade Zone Jujin Investment Management Partnership will each pump CNY300 million into Leshi Zhixin Electronic Technology Tianjin Co., the fundraiser said in a statement on May 19.
The deal values the company at CNY9 billion (USD1.4 billion), paling in comparison to its former CNY12 billion valuation. It will also see Leshi Zhixin strike up an e-commerce partnership with JD, China’s biggest online retailer, and take the parent’s stake in the firm to 33.5 percent from 40.3 percent.
Leshi Zhixin is one of few seemingly health assets remaining under the LeEco marque. Founder Jia Yueting plunged the group into billions of debt last year before resigning as chairman in July, handing control to Sun Hongbin, chairman of ‘white knight’ investor Sunac China Holdings Ltd, which pumped USD2.2 billion into the company in January 2017 and is the company’s second-largest shareholder, behind Jia.
Sun resigned from the post and board in March, six months after describing the investment in Leshi as his only regret in life. Sunac executive Liu Shuqing filled in as interim chairwoman following Sun’s departure, and she took on the role full time last month.
Editor: James Boynton