China’s largest classified ads site 58.com Inc. says it has completed a swap of its shares in Mighty Talent Ltd., a China-based short-term and vacation rental platform owned by Ganji, with bigger rival Tujia.com International.
As a result, 58.com has divested all its 65.7% stake in Mighty Talent Ltd., also known as Mayi, in exchange for a minority stake in Tujia, says a company announcement.
In addition to the share swap, 58.com will acquire additional Tujia shares by investing online traffic resources, as well as US$10 million in cash and a US$2 million bridge loan for Mayi.
"Mayi’s focus on consumer-to-consumer short-term rentals in tier 1 and 2 Chinese cities highly complements Tujia’s strength in tourist-destination cities," says Michael Jinbo Yao, chairman and CEO of 58.com.
Following the transactions, 58.com, together with Tujia’s existing strategic shareholders, Ctrip and Homeaway, a subsidiary of Expedia Inc., will continue to support both Mayi and Tujia.
Tujia last completed US$300 million series D and D+ rounds led by All-Stars Investment Ltd., with participation from the Ascott Limited, Ctrip, HomeAway, Inc., Lightspeed Venture Partners, GGV Capital, CDH Investments, China Broadband Capital, and Qiming Venture Partners.