Guo Guangchang, Chinese billionaire and chairman of Fosun Group, is looking to buy a RMB4 billion (US$631 million) stake in Chinese dating service Baihe Network Co., which trades on China’s New Third Board.
Yuanhong Investment Ltd, which is controlled by Guo, is planning to buy 869 million shares, or 69.18% stakes of Baihe.com for RMB4.6 (US$0.73) per share, according to Baihe’s security filing.
Founded in 2005, Baihe.com provides online and offline dating, relationship consulting and wedding planning services. In 2015, Baihe acquired and privatized its competitor Jiayuan.com International Ltd.
Baihe has more than 310 million registered users and more than 200 stores that offers one-to-one dating services. The company booked revenue of RMB671 million (US$105.7 million), and net profit of RMB65 million (US$10.3 million) last year.
With the acquisition, Guo will become the controlling shareholder in Baihe. Yuanhong Investment said it is investing in Baihe to capture business opportunities in the Internet sector.
The consumer sector has become a major bet for Guo’s conglomerate Fosun Group. Last year, it acquired 18% of Tsingtao Brewery Co., Ltd. for US$844 million, French margarine maker St Hubert SAS for €625 million (US$733 million) and French luxury couture house Jeanne Lanvin SAS.