PE investors to exit China's Happigo Home Shopping

According to a filing, Hony will sell 74.38 million shares, or a 18.55% stake in Happigo, while CITIC PE will offload 36 million shares. Sequoia intends to sell 18.1 million shares, or a 4.51% stake. Happigo's market capitalization was RMB11 billion on March 16.

AVCJ Research's records show Hony purchased a 21.18% stake in the company for $18.08 million in 2010, while CITIC PE invested $10.04 million for a 11.76% interest. Sequoia and Hunan Hi-Tech Venture Capital invested $5.02 million and $3.74 million in the company, respectively.

In 2014, Hony made a follow-on investment, committing an additional $9.63 million for a 2.77% stake. Hunan Hi-Tech also committed $14.69 million in a pre-IPO round. Happigo went public in January last year, raising RMB632 million.

Founded in 2005, the company is owned by Chinese leading television network and media company Hunan Broadcasting System, also known as Mango TV. Happigo relies on TV shopping shows to sell consumer products, such as electronics and cosmetics. It also operates e-commerce platforms, allowing consumers to buy products through its self-run mobile app and Tencent's social networking platform Wechat.

Revenue reached RMB2.96 billion in 2015, up from RMB2.73 billion in 2014. However, its net profit fell 38.03% year-on-year to RMB95 million in 2015.

In a separate filing, Hony has partnered with Happigo and its parent company Mango TV to launch an consumer sector-focused fund, with a target to raise between RMB2-2.5 billion. The vehicle, named Le Yi Industry Fund, has already received RMB79.6 million from Happigo. Mango TV and Hony have each contributed RMB59.7 million. The remainder will be raised from third-party investors.

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• Topics
• Greater China
• Open market
• Consumer
• Media
• Fundraising
• China
• Exit
• Hony Capital
• Citic Private Equity
• Sequoia Capital
• Media
• Consumer
• Fundraising