TD Holdings has announced that it has entered into a non-binding letter of intent for the acquisition of e-commerce commodities trading platform Shenzhen Tongdow Internet Technology (STIT).
According to the announcement, TD Holdings will be acquiring between 30% and 65% of the equity interest of the company. The agreement also stipulates that the acquisition deal will be closed with a cash transaction, although the actual amount will be determined after further considerations.
But both firms have agreed on the estimation of STIT equity, which is placed to be between $145 million and $180 million.
The deal is expected to be finalized before the end of H1 2022. However, the completion of the deal during that time will depend on the signing of a definitive agreement and the due diligence process.
The Deal Will Bring Massive Benefits
Chief Executive Officer of TD Holdings, Renmei Ouyang, commented on the acquisition agreement.
He stated that the company is excited about the deal and believes it will bring massive benefits, enabling the firm to complete the transformation of its strategic digital technology.
It will also help the firm to improve profitability, optimize cash flow turnover, and transform commodity trading.
He added that the company aims to develop an ecosystem of digital platforms by providing comprehensive services that will meet the needs of customers. The acquisition of STIT, according to Renmei, will help to achieve these goals.
TD Holdings is a service provider that offers supply chain services and commodity trading businesses in China. The company engages in buying non-ferrous metal products from mineral and upstream metal suppliers and selling them to downstream customers. The company says it offers a one-stop digital intelligence supply chain platform that integrates the downstream and upstream sectors for trading.
Shenzhen Tongdow Internet Technology Co., Ltd. (STIT) was launched in 2014 and focuses on innovating e-commerce platforms while offering network maintenance services. It provides a complete e-commerce service that includes logistics, information, bank settlement, online financing, collective procurement, and spot transactions.
STIT’s service network offers training, technical support, and efficient services to clients. The company has more than 150,000 customers, which will be benefiting from the proposed integration into TD Holdings.