Cash-strapped Chinese tech firm LeEco secured a $2.2 billion investment from a group led by property developer Sunac China Holdings, but shares in the rescuer plunged Monday on news of the deal. Hong Kong-listed Sunac said Friday it would plough 15.04 billion yuan into the sprawling LeEco empire, which has interests in various sectors including self-driving cars, smartphones, film making, and TV-set manufacturing.
Its diverse ventures pit the company against Apple, Netflix, and Tesla and home-grown Chinese champions Baidu, Tencent, and Alibaba. But the company's relentless expansion has put a strain on its cash flow, and in November billionaire founder Jia Yueting told employees the company grew too quickly and was short of funds.
Shares in its Shenzhen-listed LeShi affiliate dived more than 36 percent last year and in December were suspended from trading before restarting Monday.
It ended down 1.12 percent at 35.40 yuan in Shenzhen.
Comments
Comments are closed.