Sequoia exits Chinese retailers to SINA
A statement by SINA, one of China’s largest online media and mobile companies, has confirmed that the group and its parent company, DongXiang, are purchasing approximately 19% of the share capital of Nasdaq-listed Mecox Lane, an online retailer of clothing and accessories in China.
The shares are currently owned by wholly owned subsidiaries of Sequoia Capital. The purchase price translates into $6 per American depositary share (ADS), or $0.8571 per ordinary share. The deal value therefore stands at around $66 million including options. The sale price is a significant discount to the debut price of Mecox when it listed in October 2010. At that time, the stock opened at $11 per ADS, raising around $129.17 million.
“We are very pleased that SINA and Dongxiang become strategic shareholders of the company and would continue to support management in executing their business plan and strategies”, commented Neil Shen, Chairman of the Board of Directors of Mecox Lane and Managing Partner of Sequoia Capital China.
Sequoia did not disclose the price it paid for equity in Mecox Lane when it initially invested. As such, the returns on the deal are unknown.
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