Meitu inks strategic deal, plans convertible bond issue to Alibaba

Meitu Inc. has announced a strategic partnership with Alibaba.com China Limited, an indirect subsidiary of Alibaba Group Holding Limited, focusing on areas like e-commerce, AI technology, and cloud computing. As part of this collaboration, Meitu plans to issue convertible bonds to Alibaba with a principal amount of US$250 million. The bonds will have a three-year term and an initial conversion price of HK$6.00 per share, subject to adjustments, as per an agreed rate. Upon full conversion, Meitu will allot a maximum of 335,513,916 shares, representing approximately 7.35% of existing shares and 6.85% of the total shares after issuance. Interest on the bonds will be 1% per annum, payable semi-annually. The company intends to allocate the proceeds to general business purposes, and the listing of the conversion shares on the Hong Kong Stock Exchange will be sought.