Tencent and 58.com Enter Strategic Partnership to Strengthen Local Services
- Tencent to invest US$736 million and take 19.9% equity interest in 58.com -
BEIJING, June 27, 2014
BEIJING, June 27, 2014 /PRNewswire/ -- 58.com Inc. (NYSE: WUBA) ("58.com"),
China's largest online marketplace serving local merchants and consumers, and
TencentHoldings Limited ("Tencent", SEHK: 00700), a leading provider of
comprehensive Internet services in China, today jointly announced that Tencent
has agreed to invest US$736 million in exchange for approximately 19.9% equity
interest in 58.com on a fully-diluted basis.
Tencent has agreed to purchase 36,805,000 Class A and B ordinary shares at a
purchase price of US$20 per ordinary share, corresponding to US$40 per
American Depositary Share, each representing two ordinary shares. In addition,
58.com will use part of the proceeds from this transaction to repurchase
27,603,750 ordinary shares from existing pre-IPO shareholders.
Tencent and 58.com have agreed to use each other as the preferred partner in
local services. Both companies will jointly build out next generation
online-to-offline ("O2O") services leveraging the combined strengths of their
58.com will solidify its leading position in local services by capturing
traffic from Tencent's various online properties such as QQ, Weixin, QQ.com,
and QQ browser. Integrating 58.com's services into these properties will
further expand 58.com's user base, improve the user experience by allowing
users to access social tools to find recommended merchants, and help users
improve the level of communication between each other and with merchants.
For Tencent, the investment further strengthens its expanding O2O eCommerce
ecosystem in China, which also includes Dianping, Didi Dache, JD.com and Leju.
Its large social user base will benefit from the broadening local services
offering, select quality vendors or merchants leveraging social sharing online
and enjoy an enhanced O2O user experience. Tencent will help small and
mid-sized enterprises and other merchants communicate with consumers via
Weixin Official Accounts system or Enterprise QQ system, and complete
transactions using Tencent's online payment solutions. Merchants will benefit
from better customer relationship maangement and improved consumer targeting
via location-based functions.
About 58.com Inc.
58.com Inc. (NYSE: WUBA) operates China's largest online marketplace serving
local merchants and consumers, as measured by monthly unique visitors on both
its www.58.com website and mobile applications. The Company's online
marketplace enables local merchants and consumers to connect, share
information and conduct business. 58.com's broad, in-depth and high quality
local information, combined with its easy-to-use website and mobile
applications, has made it a trusted marketplace for consumers. 58.com's strong
brand recognition, large and growing user base, merchant network and massive
database of local information create a powerful network effect. For more
information on 58.com, please visit http://www.58.com.
Tencent uses technology to enrich the lives of Internet users.Every day,
hundreds of millions of people communicate, share experiences, consume
information, seek entertainment, and shop online through our integrated
platforms.Our diversified services include QQ, Weixin and WeChat for
communications; Qzone for social networking; QQ Game Platform for online
games; QQ.com for information; as well as our eCommerce services.
Our company was founded in Shenzhen in 1998 and went public on the Main Board
of the Hong Kong Stock Exchange in 2004.The Company has been one of the 50
constituent stocks of the Hang Seng Index since June 10, 2008, under stock
code 00700.We seek to evolve with the Internet by investing in innovation,
providing a hospitable environment for our partners, and staying close to our
For more information, please visitwww.tencent.com/ir
Safe Harbor Statements
This press release contains forward-looking statements made under the "safe
harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as
amended, and the U.S. Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as "will,"
"expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. 58.com may also make written
or oral forward-looking statements in its reports filed with or furnished to
the U.S. Securities and Exchange Commission, in its annual report to
shareholders, in press releases and other written materials and in oral
statements made by its officers, directors or employees to third parties. Any
statements that are not historical facts, including statements about 58.com's
beliefs and expectations, are forward-looking statements that involve factors,
risks and uncertainties that could cause actual results to differ materially
from those in the forward-looking statements. Such factors and risks include,
but not limited to the following: 58.com's goals and strategies; its future
business development, financial condition and results of operations; its
ability to retain and grow our user base and network of local merchants for
our online marketplace; the growth of, and trends in, the markets for our
services in China; the demand for and market acceptance of its brand and
services; competition in our industry in China; its ability to maintain the
network infrastructure necessary to operate its website and mobile
applications; relevant government policies and regulations relating to the
corporate structure, business and industry; and its ability to protect our
users' information and adequately address privacy concerns. Further
information regarding these and other risks, uncertainties or factors is
included in the Company's filings with the U.S. Securities and Exchange
Commission. All information provided in this press release is current as of
the date of the press release, and 58.com does not undertake any obligation to
update such information, except as required under applicable law.
For more information, please contact:
Mr. Christian Arnell
Ms. Linda Bergkamp
Tel: +86 755 8601 3388 ext 88369 or +852 3148 5100
Tel: +86 755 8601 3388 ext 56011
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