Leshi Internet to acquire finance assets from affiliate for $455m

Source:Reuters Published: 2017/9/25 21:03:40

The Shenzhen listed unit of Chinese technology conglomerate LeEco said on Sunday that it plans to buy investment and financial service assets from an affiliate for up to 3 billion yuan ($455.24 million) as part of a restructuring exercise.

Leshi Internet Information & Technology, a video content company, said in a filing it would have the assets transferred from Leshi Investment Management (Beijing) for no more than 3 billion yuan.

Leshi said the move, a financial arrangement between the listed company and its affiliate, fits its strategy and would help it provide Internet finance to its users.

Leshi Investment Management is LeEco's finance arm with businesses in online payments, online transactions and asset management.

It is applying for licenses in banking, securities brokerage and financial leasing, in addition to licenses it already holds, according to the filing.

Leshi has been suspended from trading  since April pending a major asset restructuring.

Its founder, Jia Yueting, has been battling financial problems facing his LeEco group.

The company's businesses, from a Netflix-like video website to electric cars, were seen to have expanded too rapidly in recent years.

Jia resigned from all posts at Leshi in July, with new investor Sunac China's Chairman Sun Hongbin taking over as Leshi's new chairman.



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