Pinduoduo To Invest USD200 Million In Gome

Chinese mobile shopping platform Pinduoduo announced to subscribe USD200 Million convertible bonds of Gome with a valid period of three years.

The coupon annual interest rate is 5% and the initial conversion price is HKD1.215 per share.

If all the conversion rights are finally exercised, Pinduoduo will gain 1.28 billion new shares of Gome, which account for 5.62% of the total share capital of Gome after the conversion.

At the same time, the two parties announced full strategic cooperation. Gome's products will be launched on Pinduoduo and Gome's logistics and service platforms will become Pinduoduo's logistics and home appliances post-sales service providers. In return, Pinduoduo will inject its digital retail resources, including consumer big data and platform traffic, into Gome. The two parties will also implement active cooperation in market promotion.