China’s Meituan Seeks Firepower Boost With $10bn Of New Capital

HONG KONG — Chinese food delivery company Meituan is raising $10 billion from a sale of stock and convertible bonds as it bolsters its firepower against Alibaba Group Holding in the emerging battlefield of community-group buying.

Meituan, in which Tencent Holdings holds a 17.7% stake, plans to use the new funds for the development of autonomous delivery vehicles, drone delivery services and other technology innovation, a term sheet showed.

The company aims to raise as much as $7 billion from the stock offering, including $400 million worth that would be privately placed with Tencent. The rest of the funds would come from a convertible bond, according to the term sheet.

Meituan, which posted a net loss of 2.2 billion yuan ($337.3 million) in the fourth quarter as it invested in new businesses, is keen to further its costly expansion into community-group buying. Read more…..


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