TD Holdings, Inc. (NASDAQ: GLG), a commodities trading service provider in China, has entered a non-binding letter of intent with Shenzhen Tongdow Internet Technology Co., Ltd., an integrated service provider of online to offline e-commerce commodities trading platform in China.
TD as part of the LOI agree to acquire between 30-65% of the equity interest in STIT. The value of the investment is estimated to be between $145 and $180 million. The firms’ anticipate the deal to close no later than the end of June, 2022.
“We are excited about this potential transaction and we believe it will bring significant benefits to us as it will help the Company complete the strategic digital technology transformation of commodity trading, optimize cash flow turnover and improve profitability.” added Renmei Ouyan, CEO at TD Holdings. “Our goal is to build an ecosystem of digital e-commerce platforms through the digital management and operation of global commodities trading and the construction of 5G smart warehouses, and to provide comprehensive services to meet the customers’ needs.”