PChome Online, Eyeing Fintech and BNPL Opportunities, Announces NT$1 billion Private Placement to Introduce China Development Financial (2883.TW) and Chunghwa Telecom (2412.TW) as Strategic Investors
PChome Online Inc. announced a strategic partnership with China Development Financial (CDF) and Chunghwa Telecom (CHT) on September 17, 2021. The partners will invest NT$1 billion in a private placement, acquiring 7.35% of PChome's shares at NT$106.65 each. PChome aims to enhance its fintech ecosystem by acquiring a ~50% stake in 21st Century Digital Technology Co., Ltd by investing NT$2.16 billion and exchanging shares from its fintech subsidiary. This collaboration is expected to accelerate PChome's fintech roadmap and profitability through shared expertise and resources.
- NT$1 billion private placement strengthens financial position.
- Partnership enhances fintech capabilities via 21CD's BNPL platform.
- Acquisition of ~50% stake in 21CD to expand market presence.
- High investment of NT$2.16 billion raises concerns over cash flow.
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TAIPEI, Sept. 17, 2021 /PRNewswire/ -- PChome Online Inc. (8044.TW) today (Sep. 17th, 2021) is pleased to announce a strategic partnership with China Development Financial ("CDF"), Chunghwa Telecom ("CHT") and the founders of 21st Century Digital Technology Co., Ltd ("21CD"). The strategic investors will jointly subscribe PChome's NT
The strategic partnership, together with the industry leaders from the financial and telecom industries, reinforces our mission statement to build an "everyday reliable" product and service portfolio to fulfill the consumers' demands. It's also a major step forward for PChome to work together with strategic partners to multiply the impact of "PChome ecosystem".
To strengthen the cooperation and unlock potential synergies, PChome will subsequently acquire a controlling stake (~
As an investment portfolio company of CDF's venture capital arm, 21CD is one of the fastest growing BNPL platforms in Taiwan. Its BNPL service was also launched at PChome B2C platform in the first quarter of 2021. With PChome ecosystem's rich traffic and data flow from day-to-day transactions across buyers and sellers, we believe the new partnership, including the combination of 21CD and Pi, can significantly speed up PChome's fintech business roadmap and its path to profitability, by leveraging our partners' financial product knowhow, credit data system, experienced management team, and capital support.
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SOURCE PChome Online Inc.
FAQ
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