Pinduoduo invests into Gome Retail

Gome Retail, a Chinese home appliance chain retail giant, formally reached a strategic cooperation with Pinduoduo, a new e-commerce platform, on the evening of April 19th.

Gome Retail, a Chinese home appliance chain retail giant, formally reached a strategic cooperation with Pinduoduo, a new e-commerce platform, on the evening of April 19th.

Pinduoduo made a strategic investment in Gome in the form of convertible bonds totaling US $200m, with an initial conversion price of HK $1.215 per share, which is 66.44% higher than Gome’s closing price on April 17, 2020 and and 68.75% higher than the average closing price for the five consecutive trading days ending April 16, 2020, respectively.

According to the agreement, Gome will connect its “Home Life” supply chain, medium and large object logistics network, service solutions and other retail infrastructure to Pinduoduo, to provide it with various high-quality goods and services.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/04/21/pinduoduo-invests-into-gome-retail/.

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