BEIJING–(Organization WIRE)–KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE), a major integrated on the net and offline system for housing transactions and solutions, currently introduced that the Organization, alongside one another with one particular of its Hong Kong subsidiaries, has entered into a definitive arrangement with Shengdu Property Renovation Co., Ltd. (together with its subsidiaries and affiliates, “Shengdu” or the “Target”) and all of its existing shareholders and subsidiaries, pursuant to which the Enterprise agreed to acquire 100% fairness interests in Shengdu from its existing shareholders, for a complete thought capped at RMB8 billion consisting of income and equity, subject matter to a staggered acquisition arrangement and customary closing circumstances, including regulatory approvals.
The upfront acquisition will be for particular equity pursuits of the Goal. The acquisition of the remaining fairness interests of the Focus on, as a next step, will be issue to pleasure of selected effectiveness focus on standards and other customary closing conditions. The thing to consider to be paid out in relationship with the acquisition of the remaining fairness pursuits will be topic to pre-agreed price adjustment mechanisms. The transaction is at this time envisioned to near in the very first fifty percent of 2022.
Launched in 2002 and headquartered in Hangzhou, Shengdu is a total-provider house renovation company company in China. With more than 19 a long time of running working experience, Shengdu has turn out to be a renowned residence renovation provider supplier in East China with a support network masking seven provinces and municipalities, giving high-quality one-end property renovation support for a big shopper base.
Mr. Stanley Yongdong PENG, the chairman of the board and the main executive officer of Beike, commented, “We are energized to welcome Shengdu to join us and appear ahead to the powerful synergies to be realized from the acquisition. We tapped into the household renovation industry in 2019 by the launch of our house renovation brand, Beiwoo, and believe the growth of the field phone calls for substantial-good quality provider, superior-high-quality provider vendors, and standardized management and technological know-how, which are what Shengdu and us think in and zealously strive to attain. With 20 decades of operating encounter accumulated by Lianjia and Beike, we have received profound understanding on how to establish new and increased benchmarks in an current industry that we hope to progress to the next degree, and we imagine our proposed acquisition of Shengdu will empower us to reinforce our capabilities in providing superior housing products and services to satisfy the evolving demands of housing consumers.”
Mr. Weiyang YAN, the founder of Shengdu, commented, “We are fired up about our determination to join Beike household. Shengdu is a practitioner of the whole-company design in the dwelling renovation marketplace in China and, through 19 yrs of exploration, has grow to be a very well-identified player in East China. We fully endorse Beike’s strategic eyesight in the household market, and the mission and values of our enterprise mostly echo with Beike’s. We consider the transaction would enable both of those organizations to understand strategic synergies across the industry chain, and hence to deliver extra joyful residing for the housing prospects in China.”
Mr. Stanley Yongdong Peng additional issued the letter below to share some views about the proposed acquisition.
Climb the 2nd Mountain
— For the proposed acquisition of Shengdu, and Beike’s “new” property renovation support
Right now we formally announced the proposed acquisition of Shengdu. We cordially welcome colleagues at Shengdu to become portion of the Beike household, and embark on a new journey with us to advance the household renovation field in China.
In 2019, Beike tapped into the property renovation business via the start of its dwelling renovation model, Beiwoo. As we deepen our knowing, we have developed an even more robust perception in the huge progress possible of China’s dwelling renovation industry.
This is an field in significant want of large-good quality assistance. As a lot more Chinese households pursue superior residing disorders, client fulfillment will become the principal explanation that justifies the continued existence of the total industry.
This is an business that phone calls for superior-good quality support suppliers. We see the need for hundreds of thousands of gurus in the dwelling renovation marketplace, which includes designers, project supervisors and workers, to be equipped with industry experience and expert ethics and win respect by means of their large-high-quality support.
This is an marketplace in need of standardized administration and technologies. By environment crystal clear expectations and targets, reiterating disciplines and processes, and employing organizational constructions, technologies and world wide web, we endeavor to change the industry into an integrated on the internet and offline high-high-quality provider business.
With 20 yrs of running practical experience accumulated via Lianjia and Beike, we have gained profound comprehension on how to create new and better standards in an existing market that we hope to advance to the up coming stage. Commencing with vertical penetration to standardize market methods and protocols, followed by horizontal expansion to integrate the total sector, has been our proven route to results. It may perhaps not be the only path, but has been examined and confirmed by us via yrs of sturdy execution, and we carry on to have powerful religion in this route.
The proposed acquisition of Shengdu is dependent on our shared comprehending and enthusiasm to achieve the “Point B” destination of the house renovation marketplace through a mutually regarded route. To move forward, we will bolster vertical integration by deepening the standardization in residence renovation solutions, products and services and industry experts.
This business is also huge. The only significant issue to ourselves really should generally be “would our existence convey any change to shoppers and provider providers in the residence renovation business?” Let us desire huge, while functioning difficult to outline and create a “new” residence renovation service for the sector!
Let’s perform jointly to support Chinese households are living improved!
About KE Holdings Inc.
KE Holdings Inc. is a primary built-in on the internet and offline platform for housing transactions and providers. The Company is a pioneer in making the business infrastructure and requirements in China to reinvent how provider vendors and housing customers competently navigate and consummate housing transactions, ranging from current and new house income, property rentals, to dwelling renovation, real estate monetary answers, and other products and services. The Corporation owns and operates Lianjia, China’s main actual estate brokerage brand and an integral element of its Beike platform. With 20 decades of operating knowledge by way of Lianjia due to the fact its inception in 2001, the Business believes the results and confirmed track document of Lianjia pave the way for it to make the field infrastructure and standards and drive the fast and sustainable expansion of Beike.
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