Chinese property platform KE Holdings on Tuesday said it plans to acquire home renovation service provider Kongjian Zhihui for a total cash consideration of up to 1.55 billion yuan ($212.1 million).
KE Holdings, which is dually- and primarily-listed on the Hong Kong and New York bourse, has entered into an equity acquisition agreement with all the existing shareholders of Kongjian Zhihui, through its wholly-owned subsidiary Beike Meijia, to acquire 98% equity share of the home renovation firm, according to an exchange filing on Tuesday.
As part of the acquisition, H iKongjian, one of the existing shareholders of Kongjian Zhihui, has agreed to sell a 7% stake in Kongjian Zhihui for $12.7 million.
The proposed acquisition is set to be completed in the first half of 2024, subject to customary closing conditions, including regulatory approvals.
Also known by its Beike platform, KE Holding provides an integrated online and offline platform for housing transactions and services. The Beijing-headquartered firm expects the acquisition will further diversify its home renovation brand and product portfolio to meet rising consumer needs, per the filing.
Founded in 2010, Kongjian Zhihui offers one-stop home renovation services via its ikongjian brand covering over 14 cities across China. Prior to the acquisition, the firm counted Shunwei Ventures II (Hong Kong) Limited; and Ningbo Meishan Bonded Port GOME Xinshengda Venture Capital, a subsidiary of Chinese electronics retailer GOME Retail Holdings, among some of its shareholders.