China: Guochuang Hi-Tech buying online realtor QFang for $54m

100 Yuan notes are seen in this illustration picture in Beijing November 5, 2013. REUTERS/Jason Lee/Files

Shenzhen-listed asphalt manufacturer Hubei Guochuang Hi-tech Material Co Ltd is acquiring Shenzhen Yunfang Internet Technology Co, an operator of online real estate leasing and agency platform, for $54 million (RMB380 million).

Guochuang Hi-Tech will finance the deal by raising up to $290 million from eight investors. It plans to further develop Qfang’s business, the China Money Network (CMN) reported.

Guochuang Hi-Tech agreed to acquire the online realtor after Qfang’s $61-million fallout deal with Shenzhen WorldUnion Properties Consultancy on account of disagreement over deal terms.

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Founded in 2012, Qfang has been experiencing difficulties due to tighter regulations on online realtor business even as China’s property market faces uncertainties in terms of government policy.

Qfang previously received $1.4 million funding from Shenzhen Qianhai Huxing Capital Management in 2015.

Another online realtor was earlier acquired by Zhejiang Ming Jewellery Co Ltd for $350 million, CMN noted.

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