Cases & Deals

China Post Group Limited invests $128 million in Ule Holdings Limited

Clients China Post Group Corporation

Jones Day is advising China Post Group Limited with its $128 million investment in Ule Holdings Limited through Telpo Philatelic Company Limited ("Telpo"), a subsidiary of China Post.

Ule Holdings Limited and Telpo entered into a share subscription agreement, pursuant to which Ule Holdings Limited agreed to allot and issue, and Telpo agreed to subscribe for, an aggregate of 912,332,171 shares of Ule Holdings Limited.

The transaction is subject to antitrust clearance and other customary regulatory approvals and certain closing conditions. Following the transaction, Telpo shall own 70% of the entire issued share capital of Ule Holdings Limited, as increased from approximately 43.71% prior to the completion of the transaction. Meanwhile, TOM E-Commerce Limited and other minority shareholders shall own approximately 22.39% (reduced from approximately 42% prior to the completion of the transaction) and 7.61% of the entire issued share capital of Ule Holdings Limited, respectively. Moreover, TOM E-Commerce Limited has signed a deed of waiver, pursuant to which it agreed to waive its right to convert the convertible shareholder loan into shares of Ule Holdings Limited. It is anticipated that China Post, in its capacity as the controlling shareholder of Ule Holdings Limited, shall promote the development of Ule Holdings Limited's e-commerce and new retail services in China.