BEIJING–(Business WIRE)–KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE), a leading integrated on the net and offline platform for housing transactions and solutions, currently announced that the Enterprise, together with 1 of its Hong Kong subsidiaries, has entered into a definitive settlement with Shengdu Property Renovation Co., Ltd. (together 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 purchase 100% fairness passions in Shengdu from its present shareholders, for a overall thought capped at RMB8 billion consisting of hard cash and equity, matter to a staggered acquisition arrangement and customary closing disorders, including regulatory approvals.
The upfront acquisition will be for certain fairness passions of the Goal. The acquisition of the remaining equity pursuits of the Goal, as a upcoming action, will be matter to satisfaction of specific effectiveness focus on conditions and other customary closing ailments. The consideration to be paid in relationship with the acquisition of the remaining fairness passions will be issue to pre-agreed value adjustment mechanisms. The transaction is currently predicted to close in the to start with fifty percent of 2022.
Established in 2002 and headquartered in Hangzhou, Shengdu is a entire-assistance household renovation assistance supplier in China. With over 19 many years of operating experience, Shengdu has turn into a renowned dwelling renovation services provider in East China with a assistance network covering 7 provinces and municipalities, offering high quality a single-end dwelling renovation service for a large client foundation.
Mr. Stanley Yongdong PENG, the chairman of the board and the main government officer of Beike, commented, “We are excited to welcome Shengdu to be part of us and seem ahead to the potent synergies to be realized from the acquisition. We tapped into the home renovation industry in 2019 through the launch of our household renovation model, Beiwoo, and consider the improvement of the sector phone calls for high-quality services, significant-high quality services suppliers, and standardized management and technological innovation, which are what Shengdu and us feel in and zealously attempt to attain. With 20 yrs of operating encounter amassed by Lianjia and Beike, we have received profound being familiar with on how to create new and better requirements in an present business that we hope to advance to the following amount, and we imagine our proposed acquisition of Shengdu will enable us to fortify our capabilities in delivering greater housing products and services to satisfy the evolving requirements of housing prospects.”
Mr. Weiyang YAN, the founder of Shengdu, commented, “We are excited about our determination to be a part of Beike relatives. Shengdu is a practitioner of the entire-company product in the property renovation business in China and, through 19 many years of exploration, has turn out to be a nicely-identified participant in East China. We fully endorse Beike’s strategic eyesight in the household sector, and the mission and values of our business largely echo with Beike’s. We feel the transaction would allow both equally corporations to comprehend strategic synergies across the field chain, and so to provide far more joyful dwelling for the housing prospects in China.”
Mr. Stanley Yongdong Peng further issued the letter under to share some thoughts about the proposed acquisition.
Climb the Next Mountain
— For the proposed acquisition of Shengdu, and Beike’s “new” home renovation company
Pricey all,
Now we formally declared the proposed acquisition of Shengdu. We cordially welcome colleagues at Shengdu to turn out to be component of the Beike household, and embark on a new journey with us to advance the property renovation market in China.
In 2019, Beike tapped into the dwelling renovation marketplace by way of the start of its residence renovation brand, Beiwoo. As we deepen our comprehension, we have created an even more powerful perception in the extensive advancement prospective of China’s dwelling renovation market.
This is an market in significant need to have of superior-high-quality services. As a lot more Chinese people pursue superior dwelling situations, customer fulfillment will become the primary rationale that justifies the continued existence of the entire marketplace.
This is an industry that calls for superior-quality services companies. We see the want for thousands and thousands of experts in the dwelling renovation business, such as designers, project managers and employees, to be geared up with industry abilities and qualified ethics and gain regard through their higher-high quality company.
This is an industry in will need of standardized management and technological know-how. By location crystal clear requirements and targets, reiterating disciplines and methods, and making use of organizational structures, technological innovation and internet, we endeavor to change the industry into an built-in online and offline large-high-quality support business.
With 20 several years of functioning working experience accumulated by means of Lianjia and Beike, we have gained profound knowledge on how to build new and better specifications in an existing marketplace that we hope to advance to the subsequent degree. Commencing with vertical penetration to standardize marketplace tactics and protocols, adopted by horizontal growth to combine the full field, has been our tested route to achievement. It may well not be the only path, but has been analyzed and verified by us through many years of potent execution, and we keep on to have sturdy faith in this route.
The proposed acquisition of Shengdu is based on our shared comprehension and enthusiasm to achieve the “Point B” desired destination of the household renovation marketplace via a mutually regarded path. To transfer forward, we will strengthen vertical integration by deepening the standardization in household renovation products and solutions, solutions and pros.
This market is also major. The only meaningful concern to ourselves need to always be “would our existence convey any big difference to individuals and support vendors in the dwelling renovation field?” Let’s desire large, while performing hard to determine and acquire a “new” property renovation provider for the sector!
Let us perform jointly to help Chinese family members live much better!
Stanley
About KE Holdings Inc.
KE Holdings Inc. is a major built-in on line and offline system for housing transactions and services. The Enterprise is a pioneer in constructing the industry infrastructure and specifications in China to reinvent how provider providers and housing clients efficiently navigate and consummate housing transactions, ranging from current and new residence profits, home rentals, to residence renovation, serious estate financial methods, and other expert services. The Firm owns and operates Lianjia, China’s leading real estate brokerage manufacturer and an integral section of its Beike system. With 20 several years of working encounter via Lianjia since its inception in 2001, the Enterprise believes the achievement and demonstrated monitor file of Lianjia pave the way for it to establish the industry infrastructure and requirements and drive the swift and sustainable growth of Beike.
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