BEIJING–(Enterprise WIRE)–KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE), a main built-in on line and offline platform for housing transactions and solutions, right now announced that the Enterprise, jointly with one particular of its Hong Kong subsidiaries, has entered into a definitive arrangement with Shengdu Property Renovation Co., Ltd. (jointly with its subsidiaries and affiliate marketers, “Shengdu” or the “Target”) and all of its current shareholders and subsidiaries, pursuant to which the Company agreed to acquire 100% fairness pursuits in Shengdu from its current shareholders, for a whole consideration capped at RMB8 billion consisting of money and equity, matter to a staggered acquisition arrangement and customary closing disorders, including regulatory approvals.
The upfront acquisition will be for sure equity interests of the Target. The acquisition of the remaining equity pursuits of the Target, as a upcoming move, will be subject to gratification of specific effectiveness focus on standards and other customary closing conditions. The thing to consider to be compensated in relationship with the acquisition of the remaining equity pursuits will be issue to pre-agreed cost adjustment mechanisms. The transaction is at this time envisioned to shut in the very first 50 % of 2022.
Launched in 2002 and headquartered in Hangzhou, Shengdu is a whole-provider residence renovation company service provider in China. With above 19 a long time of running expertise, Shengdu has come to be a renowned residence renovation service service provider in East China with a company community covering seven provinces and municipalities, delivering top quality 1-prevent home renovation service for a large buyer foundation.
Mr. Stanley Yongdong PENG, the chairman of the board and the chief executive officer of Beike, commented, “We are excited to welcome Shengdu to sign up for us and appear ahead to the solid synergies to be realized from the acquisition. We tapped into the house renovation business in 2019 by the launch of our household renovation brand name, Beiwoo, and imagine the enhancement of the sector calls for large-excellent assistance, substantial-quality company providers, and standardized administration and know-how, which are what Shengdu and us think in and zealously attempt to obtain. With 20 yrs of running practical experience gathered through Lianjia and Beike, we have gained profound knowing on how to establish new and increased criteria in an existing market that we hope to advance to the future stage, and we imagine our proposed acquisition of Shengdu will enable us to bolster our capabilities in offering greater housing products and services to satisfy the evolving demands of housing consumers.”
Mr. Weiyang YAN, the founder of Shengdu, commented, “We are psyched about our choice to be part of Beike family. Shengdu is a practitioner of the entire-provider product in the residence renovation sector in China and, by 19 yrs of exploration, has turn out to be a effectively-recognized player in East China. We absolutely endorse Beike’s strategic vision in the household sector, and the mission and values of our company mainly echo with Beike’s. We imagine the transaction would enable equally organizations to realize strategic synergies across the sector chain, and so to supply more joyful dwelling for the housing clients in China.”
Mr. Stanley Yongdong Peng further more issued the letter underneath to share some thoughts about the proposed acquisition.
Climb the Second Mountain
— For the proposed acquisition of Shengdu, and Beike’s “new” home renovation company
Currently we formally declared the proposed acquisition of Shengdu. We cordially welcome colleagues at Shengdu to turn out to be part of the Beike relatives, and embark on a new journey with us to progress the home renovation industry in China.
In 2019, Beike tapped into the dwelling renovation sector by the launch of its property renovation brand, Beiwoo. As we deepen our knowledge, we have created an even stronger belief in the large expansion possible of China’s property renovation field.
This is an business in significant require of substantial-good quality assistance. As much more Chinese households pursue much better residing problems, client satisfaction will turn into the main rationale that justifies the continued existence of the total industry.
This is an sector that calls for significant-high quality service companies. We see the require for tens of millions of professionals in the property renovation sector, like designers, project professionals and personnel, to be geared up with industry abilities and qualified ethics and win regard as a result of their substantial-top quality support.
This is an industry in need to have of standardized administration and technological know-how. By location very clear requirements and targets, reiterating disciplines and techniques, and employing organizational buildings, technological innovation and net, we endeavor to remodel the market into an integrated on-line and offline higher-high quality services industry.
With 20 yrs of functioning encounter gathered via Lianjia and Beike, we have attained profound knowing on how to establish new and increased requirements in an current marketplace that we hope to advance to the following amount. Commencing with vertical penetration to standardize sector tactics and protocols, followed by horizontal enlargement to combine the full marketplace, has been our verified path to achievements. It may well not be the only route, but has been analyzed and confirmed by us by way of a long time of powerful execution, and we continue on to have strong faith in this path.
The proposed acquisition of Shengdu is dependent on our shared comprehension and enthusiasm to access the “Point B” spot of the house renovation business by a mutually identified path. To move ahead, we will strengthen vertical integration by deepening the standardization in house renovation merchandise, companies and gurus.
This industry is much too big. The only meaningful dilemma to ourselves should really usually be “would our existence carry any variance to shoppers and provider providers in the home renovation sector?” Let’s aspiration large, when doing the job difficult to outline and build a “new” household renovation service for the marketplace!
Let’s function alongside one another to support Chinese family members stay better!
About KE Holdings Inc.
KE Holdings Inc. is a main integrated on the net and offline platform for housing transactions and products and services. The Firm is a pioneer in building the marketplace infrastructure and criteria in China to reinvent how provider providers and housing buyers successfully navigate and consummate housing transactions, ranging from current and new house product sales, residence rentals, to household renovation, true estate money solutions, and other products and services. The Corporation owns and operates Lianjia, China’s major real estate brokerage brand and an integral aspect of its Beike platform. With 20 decades of running working experience by Lianjia since its inception in 2001, the Firm thinks the achievements and confirmed observe record of Lianjia pave the way for it to establish the field infrastructure and requirements and travel the rapid and sustainable advancement of Beike.
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