(Yicai Global) Sept. 20 -- HNA Technology, a unit under debt-laden conglomerate HNA Group, has canned a proposal to buy e-commerce firm Dangdang as its parent looks to keep on top of its liabilities.
A long period of time has passed since the company announced the plan in April and market conditions have now changed, the Tianjin-based firm said yesterday in a filing to the Shanghai Stock Exchange, where its shares have been suspended since January due to restructuring at its parent. The buyer and seller have not agreed to terms and there are significant uncertainties surrounding the deal, it added.
Dangdang, which started off as book-selling site in 1999, confirmed the deal had been terminated in a post on social media platform Weibo, saying the agreement's dissolution would not affect customers, suppliers or employees.
The would-be buyer said earlier this year that it would buy Beijing-based Dangdang for CNY7.5 billion (USD1.1 billion), with CNY3 billion coming from the cash and the remainder from issuing new shares. The announcement came as a shock to many, arising from the midst of its parent selling off assets to recoup outgoings spent on a USD50 billion international shopping spree and valuing the target at twice as much as it was worth when it delisted from the New York Stock Exchange in 2016.
HNA Technology will hold a shareholders meeting tomorrow to explain the decision, and hopes to resume stock trading after that.
Editor: James Boynton