China: Sunac (real estate) is investing 15bn yuan (€2bn) in the Chinese group LeEco

Sunac China Holdings will invest 15.04bn yuan (€2bn) into LeEco, an internet service company (nternet portal, mobile telephony, IPTV, video production and distribution of content, applications for e-commerce, and connected cars) announced the Chinese real estate developer on 13/01/2017.

Sunac Real Estate, a subsidiary of Sunac, acquired 8.61% of Leshi Internet Information & Technology (a sister company of Leshi Holdings, the parent of LeEco) for 6.04bn yuan (€827m) on 10/01/2017. Sunac invested 1.05bn yuan (€140m) for 15% of Leshi Pictures, the subsidiary dedicated to cinema, and 7.95bn yuan (€1.09bn) for 33.5% of Leshi Zhixin, the subsidiary specialising in the connected TV, on 13/01/2017.

LeEco (formerly LeTV) is experiencing a liquidity crisis after investing, in particular, to develop an autonomous (or "self-driving") car, and after acquiring the US group Vizio for $2bn (€1.78bn) in July 2016. The agreements with Sunac intend to replenish the group "who lacked nothing except money," according to Sun Hongbin, president of Sunac. The transactions would mainly be via the…