BEIJING, April 17, 2015 – Ganji.com (“Ganji” or “The Company”) announced that it has completed a strategic merge with 58.com Inc. (NYSE:WUBA) Market capitalization of the new company will reach over 10 billion US dollars. The new company will become one of the 5 largest Chinese Internet companies listed in the U.S. The Hina Group served as the financial advisor to Ganji on the transaction.
The two companies will jointly set up 58 Ganji ltd in the future, adopt a dual-brand strategy, and continue to operate their respective brands, websites and teams. Mr. Mark Haoyong Yang, Chairman and CEO of Ganji, and Mr. Michael Jinbo Yao, Chairman and CEO of 58.com will serve as co-CEO and co-Chairman of the new company, and report to the Board and co-owner of the company’s decision-making on major issues. In terms of operation, Mr. Mark HaoYong Yang and Mr. Michael Jinbo Yao will be responsible for the different sectors. Additionally, Tencent has signed a definitive share purchase agreement with 58.com to purchase an additional approximately US$400 million of newly issued ordinary shares from 58.com at a purchase price equivalent to US$52 per ADS (one American Depositary Share, or "ADS", represents two class A ordinary shares).
Mr. Mark Haoyong Yang, Chairman and CEO of Ganji.com, commented, "After extensive discussions, we are pleased to reach this strategic agreement with 58.com. Both Ganji and 58.com are leading players in the online classified market and have developed unique capabilities in O2O. Personally and on behalf of Ganji, I look forward to taking advantage of the great chemistry between Ganji and 58.com, and leveraging our respective resources and advantages. We have seen and continue to see the mobile Internet enabling a transformative opportunity in the classified industry and across O2O categories. Ganji has been built on the DNA of mobile connectivity. Together with 58.com, we will continue to build a leading platform offering our customers the best experience and localized service."
Mr. Michael Jinbo Yao, Chairman and CEO of 58.com, added, "We are pleased to make this large-scale strategic investment in Ganji.com to jointly realize major cost, revenue, and strategic business synergies. Leaded by Mr. Mark Haoyong Yang and operated by a talented team, Ganji is a leading player in the online classified market with high brand awareness and large market share. This transaction is part of our larger plan to execute our vision of integrating our respective businesses and creating a larger and more effective local services Internet platform to help consumers around China find the services that they need in their local area."