Pursuant to the investment and joint venture agreements with Tospur, SouFun will subscribe for new shares of Tospur in a private placement for 16% of Tospur's outstanding share capital after the completion of the private placement for approximately RMB381 million (US$62 million) in cash; and SouFun and Tospur will invest RMB60 million (US$9.8 million) and RMB40 million (US$6.5 million), respectively, to form a joint venture to provide real estate internet financing services. Closing of the transactions contemplated by the investment and joint venture agreements are subject to customary closing conditions, including regulatory approval.
Vincent Mo, SouFun's Chairman and CEO, comments: "This is another exciting achievement in SouFun's Cooperation Partners Program with real estate brokers and agents. As the leading online platform in China's huge real estate market, SouFun has been looking for the leading off-line players to work together for the industrial upgrade of China's expanding new home and resale market. Tospur is one of the front runners of China's new home agency and consultancy companies, one of the best choices for forming strategic O2O partnerships for SouFun. I am sure that the strategic cooperation partnership will not only allow SouFun a broader and deeper access in real estate transactions but also enhance Tospur's leadership, innovation, and evolvement by integrating internet and mobile elements into its very successful offline operations.