LeEco Founder Jia Yueting Reportedly Selling Most Of His Stake In LeSports
Struggling to "tackle mounting debt," Chinese tech group LeEco Founder Jia Yueting is reportedly "selling most of his stake in the group's LeSports unit to a new consortium," according to EJ INSIGHT. Jia currently holds a 30.66% stake in LeSports. The new consortium, formed by "several veteran investors," will replace Jia to become the largest shareholder of the company and revamp the board. The "exact date of the transaction has yet to be confirmed as there are still preconditions that must be met for the equity transfer." Members of the consortium and the value of the deal "were not revealed." The amount will cover the outstanding debts of LeSports, "with the balance going to the company's accounts," according to a person familiar with the matter. LeSports will revamp its board of directors after the deal, "aiming to enhance corporate governance, decision-making mechanism, as well as the management process" (EJ INSIGHT, 9/21).