TD Holdings, Inc. Intends to Acquire Equity Interests of STIT

Fazzaco learned that TD Holdings, Inc., a service provider currently engaging in commodity trading business and supply chain service business in China, has entered into a non-binding letter of intent (LOI) with Shenzhen Tongdow Internet Technology Co., Ltd. ("STIT"), a Chinese online to offline e-commerce commodities trading platform.

Pursuant to the LOI, TD Holdings agreed to acquire between 30% to 65% of the equity interests of STIT in exchange for a certain amount of cash to be determined based on the company's further due diligence and the parties' negotiation. Both parties agree that equity value of STIT is estimated to be between $145 million and $180 million. Notably, either party to the LOI may terminate the LOI unilaterally.

The acquisition is anticipated to be completed no later than June 30, 2022, subject to due diligence investigations by the relevant parties, the negotiation and execution of a definitive share purchase agreement, satisfaction of the conditions negotiated therein including the approval of the Company's Board of Directors, and the satisfaction of other customary closing conditions. 

"We are excited about this potential transaction and we believe it will bring significant benefits to us as it will help the Company complete the strategic digital technology transformation of commodity trading, optimize cash flow turnover and improve profitability. Our goal is to build an ecosystem of digital e-commerce platforms through the digital management and operation of global commodities trading and the construction of 5G smart warehouses, and to provide comprehensive services to meet the customers' needs. We expect that the gross merchandise volume (GMV) of commodity trading transactions on our platform will continue to grow, and increase our bargaining power of commodities pricing in the international market," commented Ms. Renmei Ouyang, the Chief Executive Officer of TD Holdings.