Shanghai-based real estate services company E-House (China) Holdings Limited says Tencent will acquire from E-House a 15% stake in its wholly owned subsidiary Leju Holdings Limited for US$180 million, according to a company announcement.
The transaction is expected to close by the end of this month.
Tencent will also subscribe additional shares in Leju’s proposed initial public offerings to maintain its 15% equity interest on a fully diluted basis.
Leju has submitted a draft registration this month to the U.S. Securities and Exchange Commission for its IPO on the New York Stock Exchange, planning to raise as much as US$150 million.
"Our strategic partnership will bring Leju’s rich real estate information to Weixin users, enable Leju to better connect with our users through official accounts, and expand our payment solution to Leju’s user base," says president of Tencent, Martin Lau.
As an integrated real estate e-commerce platform under E-house, Leju offers real estate e-commerce, online advertising and listing services in China. The company also operates real estate and home furnishing websites for Sina Corp and Baidu.
Founded in 2000, U.S.-listed E-House offers real estate services, including online advertising and e-commerce, primary sales agency, secondary brokerage, information and consulting, offline advertising and promotion, and real estate investment management services.
China Renaissance and Credit Suisse are acting as financial advisers to E-House on this transaction.