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LeEco heads off cash crunch with fresh funding

By Ma Si | China Daily | Updated: 2017-01-14 07:50

Internet major LeEco said on Friday it has raised 16.8 billion yuan ($2.4 billion) in funding led by Sunac China Holdings Ltd, a Hong Kong-listed real property developer, in a move to head off its financial woes, according to caixin media.

The deal, announced in a filing to Shenzhen Stock Exchange, is expected to temporarily solve LeEco's cash crunch and help Sunac find new revenue sources, analysts said.

Sunac will spend 6 billion yuan to buy 8.61 percent shares of Leshi Internet Information and Technology Corp, the listed arm of LeEco. Once the deal is completed, Sunac will become the second biggest shareholder of Leshi.

LeEco heads off cash crunch with fresh funding

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