Rumor: Gome to Acquire 30% Shares of Quanfeng Express
Ebrun, 1/15/13
A senior executive at Quanfeng Express revealed on January 14 that Chinese home appliance and consumer electronics retailer Gome (0493.HK) has begun partnering with the courier firm, in which it will purchase a stake. An agreement for Gome's purchase of Quanfeng Express shares was to be signed the afternoon of January 14, but was subsequently postponed. One industry insider said that after initial talks between the two companies, Gome plans to purchase a 30% share of Quanfeng for a payment of RMB 300 mln in installments, with the first installment to total RMB 100 mln.
"Quanfeng Express will use the funds raised to further expand its nationwide network," the senior executive said, noting that the company needs funds to finance its current growth.
Industry rumors in March 2012 claimed that Shenzhen-based internet company Tencent (0700.HK) would acquire a controlling stake in Quanfeng, but after the initial rumor there were no further reports, and the Quanfeng executive quoted above said that Tencent had not purchased any shares of the company.
As of press time, Gome representatives said that they were unaware of any partnership with Quanfeng.
Editor's Note: For more background on this topic, please see "Rumor: Tencent Invests RMB 300 Mln in Courier Firm" MD 3/12/12 issue.
Keywords: consumer electronics hardware Gome 0493.HK Quanfeng Express investment home appliances logistics M&A
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