East Stone Acquisition Corporation (ESSC)

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China's JHD Holdings cuts SPAC deal with East Stone Acquisition at $1B

Feb. 18, 2021 10:15 AM ETEast Stone Acquisition Corp. (ESSC)By: Shweta Agarwal,

China's merchant enablement services platform JHD Holdings (Cayman) announced a deal to go public via a merger with SPAC East Stone Acquisition (ESSC +0.2%) at about a $1B valuation.

Having said that, the term of the deal call for sellers to receive $1B worth of shares of the listed company, subject to adjustments for closing cash, closing debt, and certain excess unpaid expenses; 10% of these shares will be subject to an earn-out and escrowed.
The business combination is expected to be completed by the end of 3Q21.
JHD Holdings operates under the brand name Ji Hui Duo to offer online and offline merchant enablement services platform in lower-tier cities and emerging area in China, which includes a full suite of services and technologies, point-of-sale, supply chain and logistics, and fintech/payment capability.

"In JHD we have found a truly exciting company operating in a large, dispersed and underserved addressable market with hundreds of millions of potential customers," says East Stone CEO Xiaoma Sherman Lu.
The combined company will trade on Nasdaq under the name "JHD Technologies Limited".

With this transaction in place, East Stone terminates its proposed business combination agreement with Ufin Holdings.