(Yicai Global) Dec. 18 -- Inke, popular Chinese livestreaming platform, has failed to be listed on the A-shares market through asset reorganization as its potential buyer Shunya International Brand Consulting (Beijing) Co. [SHE:300612] cancelled the acquisition plan.
The agreement on cash for assets signed between the company and the developer and operator of Inke, Beijing Milaiwu Network Technology Co. has, therefore, terminated automatically, said a statement from Shunya International without elaborating on Dec. 15.
Under Shunya International's plan it made public on Sept. 4, it was to acquire Inke by buying 48.25 percent equity in its operator, Milaiwu, for CNY2.9 billion (USD438.7 million). Under the original plan, Shunya International's shareholders were to provide CNY2.8 billion of the proposed amount. The agreement also indicated the founding team of Inke would invest CNY2.1 billion in the shareholder of Shunya International to become an indirect shareholder of the latter.
Shunya International posted revenues of CNY467 million last year, with a net profit of CNY58.71 million, while revenues and net profit were CNY4.34 billion and CNY480 million, respectively, for Inke, publicly available data show.
The huge performance gap between the two firms forced the Shenzhen Stock Exchange to inquire about the proposed acquisition plan. It asked Shunya International to further explain its capital source for the acquisition and the performance status of Inke. However, the company has not responded to the inquiry to date.
Inke wanted to enter the A-shares market through backdoor listing in the acquisition plan, commented an industry insider, saying the platform is valued as much as CNY7 billion now. Inke will further seek asset securitization after termination of the acquisition plan and may apply for IPO directly, tech.163.com reported, citing the insider.