Pinduoduo subscribes to USD200m in GOME convertible bonds in strategic partnership

New e-commerce platform Pinduoduo announced it will subscribe to USD200 million in convertible bonds (“CBs”) issued by GOME Retail.
The CBs will have a coupon rate of 5% per annum and a tenure of three years. The CBs are convertible at HK$1.215 per share, which works out to approximately 1.28 billion GOME shares or approximately 5.62% on a fully diluted basis.

New e-commerce platform Pinduoduo announced it will subscribe to USD200 million in convertible bonds (“CBs”) issued by GOME Retail.

The CBs will have a coupon rate of 5% per annum and a tenure of three years. The CBs are convertible at HK$1.215 per share, which works out to approximately 1.28 billion GOME shares or approximately 5.62% on a fully diluted basis.

The two companies announced a comprehensive strategic cooperation, Pinduoduo will help bring the entire GOME product range onto the PDD platform.

Pinduoduo will also help GOME’s digitization strategy, extending Pinduoduo’s technological capability to help the retailer upgrade its supply chain and tailor its product range to consumer needs and preferences.

GOME will integrate its logistics, delivery and assembly services with the Pinduoduo platform to enhance user satisfaction.

The two sides will also cooperate actively in marketing and other areas.

Founded in 2015, Pinduoduo has seen rapid growth as it builds on its strength in all product categories, including household appliances and electronics.

The company exceeded RMB 1 trillion in GMV for the 12-month period ended December 31, 2019. The company saw a 40% increase in active buyers in the same period to 585.2 million, while annual spending per active buyer jumped 53%.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/04/24/pinduoduo-subscribes-to-usd200m-in-gome-convertible-bonds-in-strategic-partnership/.

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