IDG Capital Exits Chinese Health Site 39.Net Via Strategic Sale

IDG Capital is to fully exit its stakes in Chinese healthcare portal 39.net via a strategic sale.

A Chinese software developer, Shenzhen-listed Longmaster Information & Technology Co., Ltd. has agreed to acquire 100% of Guangzhou Qisheng Information Technology Limited, which operates 39.net, for a total of RMB650 million (US$105 million), according to a regulatory filing submitted by Longmaster.

The deal will be completed via share swap, which will be worth RMB333 million, and cash payment to existing shareholders totaling RMB 317 million.

IDG Capital invested US$15 million in 39.net previously. It is unclear when and how big a stake IDG took.

Established in 2000, 39.net is one of the earliest healthcare online portals in China. As of 2014, it has 120 million users, of which 48% are mobile users.

Guangzhou Qisheng recorded RMB107 million in revenue in 2013, up 65% from 2012. Its net profit was RMB30.67 million, up 265% compared to 2012.

 
China Expert network

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