KE Holdings Inc. (NYSE: BEKE) has disclosed that it has inked an agreement with Shengdu Home Renovation together with one of its Hong Kong units. As per the acquisition agreement, BEKE will buy 100% equity interests in Shengdu from its current shareholders. The total payment surpassed RMB8 billion which is comprised of cash and equity. It is dependent on a varied acquisition pact and traditional closure conditions, including regulatory approvals.
Since its inception in 2002, Shengdu is a full-service home renovation service offeror in China. It is based in Hangzhou. Shengdu has more than 19 years of operating experience. It has become a famous home renovation service supplier in East China with a service network encompassing seven provinces and municipalities, offering quality one-stop home renovation service for a large customer base.
Furthermore, the upfront purchase will be for certain equity interests of Target. The purchase of the remaining equity interests of Target, as a next step, will be dependent on the fulfillment of certain performance target benchmarks and other traditional closing conditions.
Moreover, the consideration to be compensated in connection with the purchase of the remaining equity interests will be dependent on pre-agreed price adjustment mechanisms. The deal is currently anticipated to execute in the first half of 2022. Additionally, the firm disclosed that the suggested purchase of Shengdu is based on the firm’s shared understanding and passion to reach the "Point B" destination of the home renovation industry through a mutually known path.