Suning, Hony Capital Invest USD 420 Mln in PPTV

Sina Tech, 10/28/13

Chinese consumer electronics and home appliances retailer Suning (002024.SZ) held a press conference in Beijing today to announce that the company has jointly invested USD 420 mln in Chinese P2P streaming video platform PPLive (PPTV) with Hony Capital, a Beijing-based investment corporation sponsored by Lenovo's (0992.HK) parent company, Legend Holdings.

Suning has invested USD 250 mln to acquire a 44% stake in PPTV, thereby becoming the company's largest shareholder. Hony acquired a 29.9% stake in PPTV through a USD 170 mln investment. Following the transaction, PPTV's valuation has increased to USD 568 mln; higher than the USD 370 mln that Chinese internet company Baidu (Nasdaq: BIDU) paid for Shanghai-based P2P online video site PPS (PPStream).

Hony controls a 1.34% stake in Suning.

Editor's Note: For more information on this topic, please see "Rumor: Suning to Acquire PPTV for USD 400 Mln," MD 9/24/13 and "Rumor: New Funding Values PPTV at USD 800 Mln," MD 10/21/13 issues.

Keywords: Lenovo Internet investment online video PPLive Suning Hony Capital Legend Holdings 002024.SZ 0992.HK M&A

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