BEIJING, June 23, 2016 /PRNewswire/ -- 58.com Inc. (NYSE: WUBA) (collectively with its subsidiaries and other consolidated entities, "58.com"), China's largest online marketplace serving local merchants and consumers, today announced that it has completed a swap of its shares in Mighty Talent Limited ("Mayi"), a China-based short-term and vacation rental platform that was owned by Ganji, with Tujia.com International ("Tujia"), a high-quality vacation rental reservation platform that provides online search, inquiry and booking services of rental properties in China. As a result, 58.com has divested all its 65.7% stake in Mayi in exchange for a minority stake in Tujia.
In addition to the share swap, 58.com will acquire additional Tujia shares by investing online traffic resources, as well as US$10 million in cash and a US$2 million bridge loan for Mayi. Following the transactions, 58.com, together with Tujia's existing strategic shareholders, Ctrip (NASDAQ: CTRP) and Homeaway, a subsidiary of Expedia Inc. (NASDAQ: EXPE), will continue to support both Mayi and Tujia. 58.com's traffic and other resources support will reinforce Tujia's and Mayi's leading position in the online accommodation sharing market.
Mr. Michael Jinbo Yao, chairman and CEO of 58.com commented, "The sharing economy in China has become one of the fastest growing market segments. Mayi's focus on consumer-to-consumer short-term rentals in tier 1 and 2 Chinese cities highly complements Tujia's strength in tourist-destination cities. Both Tujia and Mayi have been exploring and developing new opportunities in this segment for many years and we look forward to working on business integration to increase their size and scale and improve operating efficiency and financial performance. We will continue to actively look for new innovative business models in the sharing economy to deepen our strategic reach in this segment. We believe Tujia and Mayi, together, will begin a new era in the accommodation sharing market in China."
About 58.com Inc.
58.com Inc. (NYSE: WUBA) operates China's largest online marketplace serving local merchants and consumers, as measured by monthly unique visitors on both its www.58.com website and mobile applications. The company's online marketplace enables local merchants and consumers 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. Further information regarding the risks, uncertainties or factors is included in the 58.com'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:
Mr. Christian Arnell
Phone: +852 9040 0621
Ms. Linda Bergkamp
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/58com-exchanges-its-ownership-in-mayi-for-shares-in-tujia-300289282.html