58.com acquires strategic stake in Ganji.com and announces additional investment by Tencent
58.com (WUBA) announced that it has acquired a strategic stake in Falcon View Technology, the holding company of the PRC entities operating Ganji.com, a major online local services marketplace platform in China. Concurrently, 58.com also announced an approximately US$400 million additional investment by Tencent Holdings.
- Under the terms of the definitive agreement with shareholders of Ganji, and as part of an intended long-term, strategic combination transaction, 58.com has agreed to acquire an approximately 43.2% fully diluted equity stake in Ganji for a combination of share consideration and cash, including approximately 34 million newly issued ordinary shares of the Company and $412.2 million in cash.
- The two companies, which will continue to operate their respective brands, websites and teams, intend to maximize business synergies created by this new strategic relationship, and capitalize on opportunities to cooperate and further expand their businesses.