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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

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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.

Positive
  • 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.
Negative
  • High investment of NT$2.16 billion raises concerns over cash flow.
  • -

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$1 billion private placement, representing 9,376,463 common shares of the company, or 7.35% of the enlarged share base.  The private placement is priced at NT$106.65 per share.

0917【PChome news photo】PChome Online, Eyeing Fintech and BNPL Opportunities, Announces NT<money>$1 billion</money> Private Placement to Introduce China Development Financialand Chunghwa Telecom as Strategic Investors

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 (~50%) in 21CD by 1) investing NT$2.16 billion in cash to obtain the shares from its founders and 2) exchanging PChome's shareholding in its Fintech subsidiary Pi Mobile Technology ("Pi") for 21CD's new shares, based on an exchange ratio that 1 common share of Pi can be exchanged for 0.29795959 new common share issued by 21CD.

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.

For more financial details, please visit the Market Observation Post System.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/pchome-online-eyeing-fintech-and-bnpl-opportunities-announces-nt1-billion-private-placement-to-introduce-china-development-financial-2883tw-and-chunghwa-telecom-2412tw-as-strategic-investors-301379900.html

SOURCE PChome Online Inc.

FAQ

What is the significance of the partnership between CHT and PChome Online?

The partnership aims to strengthen PChome's fintech ecosystem and accelerate its growth in the BNPL market.

How much is PChome raising in its private placement?

PChome is raising NT$1 billion from its private placement.

What percentage of shares will the investors acquire in PChome?

The strategic investors will acquire 7.35% of PChome's enlarged share base.

What company is PChome planning to control with a 50% stake?

PChome plans to acquire a controlling stake in 21st Century Digital Technology Co., Ltd.

What price per share is PChome offering in the private placement?

The private placement is priced at NT$106.65 per share.

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