Tencent Backs Merger of Women's Shopping Directories Meilishuo, Mogujie
36Kr.com, 1/11/16
Juangua Network, operator of women's fashion-focused social shopping service Mogujie.com, and Beijing-based Meili Shikong Network Technology, operator of online shopping platform and directory website Meilishuo.com, announced a merger of the two companies in recent internal emails sent to staff by their respective CEOs Chen Qi and Xu Yirong.
Chen's email said that the transaction would be completed through a share exchange, and that Chinese internet and mobile services firm Tencent (0700.HK), which has a stake in Meilishuo, will invest additional funds in the merged entity. Following the merger and investment, the combined Mogujie-Meilishuo business entity will have a value of nearly USD 3 bln.
Chen Qi will be the new company's CEO, and Xu Yirong will provide assistance to ensure that the merger proceeds smoothly.
Editor's Note: Chen's email said that Mogujie and Meilishuo shares will be valued at 2:1 for purposes of the share exchange. For more information on this topic, please see "Rumor: Online Shopping Platforms Meilishuo, Mogujie, Tao Shijie to Merge," MD 12/31/15 and "Rumor: Women's Shopping SNS Sites Meilishuo, Mogujie May Merge," MD 12/16/15 issues.
Keywords: Chen Qi Xu Yirong Internet Tencent 0700.HK Meilishuo Mogujie M&A female online fashion e-commerce
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