Chinese technology conglomerate LeEco has secured a new round of investment worth CNY 15.04 billion ($2.2 billion or roughly Rs. 14,856 crores) from property developer Sunac China Holdings, according to a stock exchange statement made by Sunac on Friday.
Last year LeEco's founder and chairman Jia Yueting said that his company was facing financial obstacles due to the rapid pace of growth in various businesses, but the company soon afterwards announced it had secured commitments for $600 million to support its automotive and other high-tech businesses.
Sunac, through its real estate subsidiary Sunac Real Estate, said on Friday it plans to invest CNY 6.04 billion (roughly Rs. 5,966 crores) in LeEco's Shenzhen-listed unit Leshi Internet Information and Technology Corp Beijing, by acquiring an 8.61 percent stake.
It also plans to invest CNY 1.05 billion in LeEco's film production company, Leshi Pictures, by acquiring a 15 percent stake, and pay another CNY 7.95 billion ($1.15 billion) for a 33.5 percent stake in Leshi Internet's subsidiary Leshi Zhixin, known for its smart Internet TVs.
Trading in Leshi Internet Information's shares, which was suspended on December 6, will resume on January 16.
Sunac has been seeking investment opportunities linked with China's technological innovation and the upgrade of consumption sectors.
Sunac said the strengthened partnership with LeEco will enable both firms to cooperate in areas such as intelligent hardware, real estate, and smart homes. It also highlighted industrial real estate as an area for greater cooperation.
For LeEco, the fresh round of funds can likely help resolve some financial difficulties it has faced in recent months, as it continues its push into the smartphones, film, sports, electric and driverless vehicles markets.
In the stock filing, Sunac said it paid CNY 35.39 per share for its stake in Leshi Internet.
Leshi Internet Information also said in a separate filing on the Shenzhen stock exchange that Chinese insurer Huaxia Life invested CNY 400 million ($58 million) in Leshi Zhixin.
© Thomson Reuters 2016