(Yicai Global) April 20 -- Chinese e-commerce platform Pinduoduo has picked up USD200 million worth of convertible bonds in Gome Electrical Appliances as the pair look to work more closely together.

The bills can convert into nearly 1.3 billion shares in Gome, over 5.6 percent of its overall share capital, the appliance maker said in a statement yesterday. It works out at HKD1.215 (16 US cents) a share, a premium of almost 69 percent over Gome’s average closing price for the five straight trading days ended April 16.

After completing the deal, Pinduoduo will add Gome’s complete retail portfolio to its marketplace and include Gome’s appliances in its scheme to offer CNY10 billion (USD1.4 billion) worth of discounts. It will also share its digital resources, including big data on shoppers and advantages in the US market, and the pair will work on marketing together.

Gome will help Pinduoduo by sharing its Anxun Logistics and Gome Housekeeper platforms with Pinduoduo’s 4 million active merchants, who sold CNY1 trillion (USD141 billion) worth of goods to 585 million annual active buyers last year.

Anxun, which has 6,000 service outlets in China, and Gome Housekeeper will provide the sellers with nationwide logistics for mid-sized and large products, warehousing and appliance services such as repairs, cleaning, maintenance and trade-ins.

Editor: James Boynton