Struggling Chinese Portal Receives Buyout Offer From Its Chairman

September 5, 2023
Share this Post: 

The Chinese real estate marketplace operator may be about to be taken private.

The company announced on its investor relations website yesterday that it has received a buyout offer from its Chairman Mr. Jiangong Dai valuing the company at $40.9 million.

The proposal involves Dai buying out all outstanding shares of Fang's American depository shares at a price of $6.19 per share, a cash price that "represents a premium of approximately 210% to the closing price of the ADSs on September 1, 2023". was a first mover in the Chinese real estate portal space. Founded as in 1999 by Vincent Mo and taken public in 2010, the portal traditionally made most of its money by selling banner ads to developers. After a downturn in the primary market in 2014, the company tried to pivot and take on the country's agents by offering transactions at 0.5% commission. In doing so burned bridges with customers and was forced to change back to its initial model. (OTC: SFUNY), not to be confused with fellow Chinese portal operator FangDD, nowadays is a direct competitor of the likes of Anjuke and Leju operating a marketing, listing, financial and value-added services business model.

The company's American depository shares were delisted from the New York Stock Exchange in 2022 after the company failed to file financial reports with the FTC. Since then shares in the company have been traded 'over the counter' with the price at the time of writing set around $2 per share.

According to a notice on its website, the company has only just received the offer and gives no guarantees about any deal taking place:

"the Board has just received the Proposal Letter and has not had an opportunity to carefully review and evaluate the proposal or make any decision with respect to the Company’s response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law."

September 5, 2023
Edmund got to know the world of portals and marketplaces working at Mitula Group (which became Lifull Connect after the buyout in 2018). He worked directly with hundreds of portals across the world in his role in the content department for three and a half years before transferring to the SEO department to understand the inner workings of listings sites. He joined Online Marketplaces as Head of Content in March 2020.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Lady Trapped In Bubble
The Property Portal Watch Conference: A Decade and a Half of Helping Break Companies Out of Their Bubbles

The Property Portal Watch conference has been a cornerstone event in the real estate and prop tech industry for over...

Read More
Imyanmarhouse Deal Closed
iMyanmarHouse Acquires Auto Marketplace

Myanmar-based real estate marketplace iMyanmarHouse, which claims to be the number one property marketplace in Myanmar, has acquired the auto marketplace...

Read More
99Acres Generic Skyline
99acres Continues to Grow Revenue in Q1 as Indian Housing Market Picks Up

The Indian online marketplace operator and parent of the 99acres portal, Info Edge has released its results for Q1 of...

Read More
Shutterstock 1855533532
SeLoger CEO, Caroline Evans de Gantès Explains Controversial FSBO Decision

Caroline Evans de Gantès, CEO of leading French real estate portal SeLoger, has justified her company's decision to allow for...

Read More

Editor's Pick