BEIJING–(Small business WIRE)–KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE), a foremost built-in on the internet and offline system for housing transactions and services, these days announced that the Enterprise, collectively with 1 of its Hong Kong subsidiaries, has entered into a definitive agreement with Shengdu Dwelling Renovation Co., Ltd. (jointly with its subsidiaries and affiliates, “Shengdu” or the “Target”) and all of its current shareholders and subsidiaries, pursuant to which the Enterprise agreed to receive 100% fairness passions in Shengdu from its present shareholders, for a complete thing to consider capped at RMB8 billion consisting of income and fairness, subject to a staggered acquisition arrangement and customary closing disorders, including regulatory approvals.
The upfront acquisition will be for particular equity pursuits of the Concentrate on. The acquisition of the remaining equity pursuits of the Focus on, as a upcoming step, will be topic to satisfaction of selected performance focus on conditions and other customary closing conditions. The thought to be paid in link with the acquisition of the remaining fairness interests will be subject to pre-agreed cost adjustment mechanisms. The transaction is at this time predicted to close in the initial half of 2022.
Launched in 2002 and headquartered in Hangzhou, Shengdu is a full-assistance dwelling renovation service company in China. With around 19 years of functioning knowledge, Shengdu has develop into a renowned dwelling renovation provider supplier in East China with a provider network covering 7 provinces and municipalities, providing top quality 1-cease household renovation services for a significant purchaser foundation.
Mr. Stanley Yongdong PENG, the chairman of the board and the chief government officer of Beike, commented, “We are thrilled to welcome Shengdu to join us and search ahead to the potent synergies to be understood from the acquisition. We tapped into the residence renovation field in 2019 via the launch of our household renovation manufacturer, Beiwoo, and believe that the development of the sector calls for substantial-top quality assistance, significant-good quality support providers, and standardized management and technological know-how, which are what Shengdu and us believe that in and zealously strive to reach. With 20 many years of running knowledge accrued by means of Lianjia and Beike, we have attained profound comprehending on how to build new and greater benchmarks in an present industry that we hope to progress to the future level, and we imagine our proposed acquisition of Shengdu will permit us to strengthen our abilities in giving better housing services to satisfy the evolving needs of housing clients.”
Mr. Weiyang YAN, the founder of Shengdu, commented, “We are excited about our choice to sign up for Beike family. Shengdu is a practitioner of the total-assistance design in the home renovation marketplace in China and, by means of 19 yrs of exploration, has turn out to be a well-regarded player in East China. We absolutely endorse Beike’s strategic eyesight in the residential sector, and the mission and values of our organization mainly echo with Beike’s. We feel the transaction would allow each organizations to understand strategic synergies across the sector chain, and hence to present more joyful dwelling for the housing clients in China.”
Mr. Stanley Yongdong Peng even 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” house renovation company
Nowadays we formally declared the proposed acquisition of Shengdu. We cordially welcome colleagues at Shengdu to come to be element of the Beike relatives, and embark on a new journey with us to progress the household renovation business in China.
In 2019, Beike tapped into the house renovation field through the start of its residence renovation manufacturer, Beiwoo. As we deepen our comprehending, we have designed an even more robust belief in the vast development potential of China’s household renovation field.
This is an market in severe want of superior-high quality provider. As extra Chinese family members pursue much better dwelling disorders, client gratification will turn out to be the main purpose that justifies the continued existence of the total market.
This is an marketplace that calls for substantial-excellent support providers. We see the want for millions of gurus in the house renovation industry, which includes designers, challenge administrators and employees, to be outfitted with market skills and skilled ethics and earn respect by way of their large-high-quality provider.
This is an sector in want of standardized administration and technological know-how. By environment crystal clear requirements and targets, reiterating disciplines and processes, and using organizational structures, technology and world-wide-web, we endeavor to renovate the business into an built-in on line and offline significant-quality assistance industry.
With 20 yrs of operating encounter accrued by means of Lianjia and Beike, we have gained profound comprehension on how to establish new and increased benchmarks in an present field that we hope to advance to the following amount. Starting with vertical penetration to standardize marketplace procedures and protocols, adopted by horizontal enlargement to combine the overall sector, has been our proven path to results. It might not be the only path, but has been examined and proven by us by means of a long time of potent execution, and we continue to have sturdy faith in this route.
The proposed acquisition of Shengdu is based mostly on our shared comprehension and passion to arrive at the “Point B” desired destination of the house renovation field through a mutually identified route. To go ahead, we will strengthen vertical integration by deepening the standardization in property renovation products and solutions, products and services and pros.
This marketplace is too massive. The only significant concern to ourselves really should always be “would our existence carry any big difference to individuals and service suppliers in the residence renovation industry?” Let us desire huge, although working really hard to outline and establish a “new” property renovation services for the business!
Let us get the job done together to assist Chinese families dwell improved!
About KE Holdings Inc.
KE Holdings Inc. is a main built-in on line and offline system for housing transactions and products and services. The Business is a pioneer in constructing the field infrastructure and criteria in China to reinvent how services vendors and housing buyers successfully navigate and consummate housing transactions, ranging from existing and new home income, home rentals, to dwelling renovation, actual estate financial options, and other products and services. The Organization owns and operates Lianjia, China’s leading authentic estate brokerage brand name and an integral portion of its Beike system. With 20 a long time of working working experience via Lianjia given that its inception in 2001, the Business believes the accomplishment and established monitor document of Lianjia pave the way for it to create the field infrastructure and specifications and push the fast and sustainable advancement of Beike.
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