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Finances Of $2.2 Billion Secured By China's Leeco For Expansion From New Investors


03/31/2017


Finances Of $2.2 Billion Secured By China's Leeco For Expansion From New Investors
Very recent stock market filings showed that new investors including Tianjin Jiarui Huixin Corporate Management Company and property developer Sunac China Holdings helped Chinese tech conglomerate LeEco to successfully raise nearly $2.2 billion.
 
LeEco's Leshi Internet Information said in an earlier filing that Sunac China controls Tianjin Jiarui Huixin.
 
The company had suffered from expanding too fast in too many directions and faced a shortage of cash, said LeEco founder Jia Yueting in November and added that the company is involved in everything from smartphones to electric vehicles.
 
Leshi said, confirming plans announced in January, that in addition to LeEco's film production subsidiary Le Vision Pictures, the new investments will go into Leshi Internet Information, its smart internet TV subsidiary Leshi Zhixin.
 
The filings revealed that LeEco’s wife, Gan Wei, who founded and owns a stake in the Chinese web TV and film firm Le Young Pictures, and that company and could potentially rival the entertainment business within LeEco, and that is a problem of industry competition which has been resolved by the company already.
 
To comply with regulations, it will buy Gan's 47.8 percent stake in Le Young Pictures, Leshi said.
 
With Liu Shuqing nominated by Tianjin Jiarui Huixin to become a non-independent director and to make way for a director to represent the new investors, Leshi also said its vice president Han Fangming would resign from its board.
 
According to her biography, Liu is a high-level manager at Sunac China.
 
Since the company had promised more conclusive announcements, the various Leshi statements were expected.
 
After one of its suppliers Compal took a stake in the company's TV subsidiary, Leshi Zhixin, Leshi's stock price soared earlier this week.
 
He'd have to wait and see about further investments in LeEco, Sunac China's chairman Sun Hongbin remarked this.
 
"We will if it's suitable, but if not then forget it. We're not a non-profit organization," Sun told reporters at an earnings press conference in Hong Kong on Tuesday.
 
He was waiting for the entire sector to just take off even though he didn't fully understand the electric vehicle industry, Sun added.
 
(Source:www.reuters.com)