Yihaodian Chairman: Wal-Mart Will Remain Hands-off
Ebrun, 12/17/12
In a December 13 interview, Yu Gang, chairman of Chinese B2C online retailer Yihaodian, denied rumors that Wal-Mart had begun to purchase Yihaodian shares from the Ping An Group. Yu said that the Ping An Group and Wal-Mart's investments in Yihaodian were strategic investments, and would not have any bearing on policy positions in Yihaodian management. Following Wal-Mart's acquisition of a controlling share in Yihaodian, the online retailer will continue to be independently operated, Yu said, and few changes will occur. Yu said that Yihaodian would IPO independently.
Wal-Mart's strategic investments in Yihaodian have had far-reaching effects on the company's business, Yu said. "Wal-Mart adds value in terms of supply chain management, procurement, and through its own self-branded products." Yu said that Yihaodian and Wal-Mart had begun cooperating in all areas, and predicted that Wal-Mart's global procurement systems will increase Yihaodian's procurement efficiency while lowering costs, and will offer Yihaodian customers a wider range of choices.
Editor's Note: On October 26, Wal-Mart announced that it had acquired a controlling stake in Yihaodian, surpassing the Ping An Group as the company's largest shareholder with a roughly 51% share of Yihaodian compared to Ping An Group's 36.9%. Yu Gang and other executives hold 11.8% of the company.
Editor's Note: For more background on this topic, please see "Wal-Mart Begins Yihaodian Acquisition, Eyes Yihaodian IPO" MD 10/22/12 issue.
Keywords: Internet IPO B2C Wal-Mart Yihaodian Yu Gang e-commerce
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