China hydropower firm buys 38% stake in VC-backed web directory

Pang, who owns 76% of 2345.com, also known as Shanghai 2345 Network Technology, will retain 38% interest in the firm upon completion of the transaction. Fuchunjiang is offering RMB650 million and its majority shareholder Yi Sun will put in RMB110 million, according to a statement. The deal is subject to a regulatory approval.

The hydropower company intends to broaden its investments into new industries, in particular internet technology, with a view to generating more income from the growth of the industry. "The internet is growing rapidly in China. However, we still face a lot of challenges ahead in this area as we lack of operational experience in online business," the company said.

AVCJ Research shows Sequoia Capital invested in 2345.com two years ago for an undisclosed sum.

2345.com, which had about 30 million users as of July, is the third-largest web directory site in China, only after Hao123.com acquired by Baidu in 2004 and Qihoo's 360hao.com. It also operates online software downloading and browser services.

Last year, the company generated RMB139 million in revenue and its net profit reached to RMB15.93 million. In the first six months of this year, it reported a net profit of RMB33.14 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Technology
• China
• TMT
• Sequoia Capital
• M&A