BEIJING, May 7, 2020 /PRNewswire/ -- 58.com Inc. (NYSE:
WUBA) ("58.com" or the "Company"), China's largest online classifieds
marketplace, today announced that Zhuan Zhuan, an online used goods
trading platform and a consolidated subsidiary of 58.com, has
entered into definitive agreements to acquire 100% equity interest
in Shenzhen Wanshifu Technology Co., Ltd. ("Shenzhen Wanshifu
Technology") with a combination of cash in the amount of
RMB360 million and newly issued Zhuan
Spirit Holdings Limited shares, Zhuan Zhuan's ultimate holding
company. Shenzhen Wanshifu Technology operates the Zhaoliangji app
(which translates into 'find nice phone'), an online platform for
used mobile phones and accessories in China. The transactions contemplated under the
definitive agreements are subject to customary closing conditions,
and are currently expected to close in the coming months. If the
transaction were to close pursuant to the terms in the definitive
agreements, the Company's equity interest in Zhuan Spirit Holdings
Limited would be diluted from 54.6% to less than 50% on fully
diluted basis. 58.com is assessing the accounting impact of the
proposed transactions, if closed.
Mr. Michael Jinbo Yao, Chairman
and CEO of 58.com, commented, "We believe that the combined
horizontal and vertical model provides unparalleled strengths for
classifieds marketplaces. We intend to replicate the proven success
we had with the combination of 58.com, a horizontal classifieds and
Anjuke, an online housing vertical acquired in 2015. We believe
Zhuan Zhuan, a horizontal used goods platform, and Zhaoliangji, a
used cell phone vertical, will create another powerful
combination."
Mr. Wei Huang, the CEO of Zhuan
Zhuan, commented, "We'd like to warmly welcome Zhaoliangji's highly
experienced and talented team to Zhuan Zhuan. Used cellphones are
the third largest category in the second-hand market in
China after secondary homes and
pre-owned cars. Used cellphones in particular have a very low
online penetration rate which creates enormous opportunities for
growth. For Zhuan Zhuan, used cellphones have always been the most
important category. Zhaoliangji, which launched around the same
time Zhuan Zhuan did, has been very successful over the years. The
combination will not only solidify our leading position in online
used cellphone B2C and C2C models and also better position us to
build a larger and more efficient ecosystem that covers more models
such as C2B and B2B for used cellphones. Zhaoliangji's team as well
as its offline inspection centers will integrate with Zhuan Zhuan's
used cellphone team. We look forward to building our ecosystem to
scale and creating future success together."
About 58.com Inc.
58.com Inc. (NYSE: WUBA) operates China's largest online classifieds
marketplace, as measured by monthly unique visitors on both its
www.58.com website and mobile applications. The Company's online
marketplace enables local business users and consumer users to
connect, share information and conduct business. 58.com's broad,
in-depth and high-quality local information, combined with its
easy-to-use website and mobile applications, has made it a trusted
marketplace for consumers. 58.com's strong brand recognition, large
and growing user base, merchant network and massive database of
local information create a powerful network effect. For more
information on 58.com, please visit http://www.58.com.
Safe Harbor Statements
This press release contains forward-looking statements made
under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. 58.com may also
make written or oral forward-looking statements in its reports
filed with or furnished to the U.S. Securities and Exchange
Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Any statements
that are not historical facts, including statements about 58.com's
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. Such factors and risks include, but not limited to the
following: 58.com's goals and strategies; its future business
development, financial condition and results of operations; its
ability to retain and grow its user base and network of local
merchants for its online marketplace; the growth of, and trends in,
the markets for its services in China; the outbreak of COVID-19 or other
health epidemics in China or
globally; the demand for and market acceptance of its brand and
services; competition in its industry in China; its ability to maintain the network
infrastructure necessary to operate its website and mobile
applications; relevant government policies and regulations relating
to the corporate structure, business and industry; and its ability
to protect its users' information and adequately address privacy
concerns. Further information regarding these and other risks,
uncertainties or factors is included in the Company's filings with
the U.S. Securities and Exchange Commission. All information
provided in this press release is current as of the date of the
press release, and 58.com does not undertake any obligation to
update such information, except as required under applicable
law.
For more information, please contact:
58.com Inc.
ir@58.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
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SOURCE 58.com Inc
