Zall Development Group announced that they will acquire a strategic stake in LightInTheBox, a global online retail company, to become its largest shareholder.
According to the report published by Zall Development Group, the two parties have reached an agreement, under which LightInTheBox will issue and Zall will subscribe 42,500,000 ordinary shares, accounting for a 30% equity interest in LightInTheBox. The total consideration is USD76.5 million, which is about CNY497 million.
Zall Development Group is a local enterprise in Wuhan. The group focuses on enterprise supply chain property and trading services. It mainly provides trading platform and property, logistics, warehousing, finance, and data services to clients. The group's offline markets include several regional central cities, including Wuhan and Tianjin, and they own over five-million-quarter-meter properties in those marketplaces. In July 2011, Zall was listed on Hong Kong Exchanges and Clearing Limited.
Yu Gang, co-chairman of Zall Development Group, said that the cooperation of the two companies will promote the fusion of their trading businesses in China and abroad while realizing integration of their online and offline resources.
In the future, the two parties will implement in-depth discussion and cooperation in cross-border trading, e-commerce operation, logistics, and finance.