Meitu announced last night that it has signed a US$250 million convertible bond agreement with Alibaba, and the two sides will carry out strategic cooperation in e-commerce platforms, AI technology, cloud computing and other fields.
It is reported that the convertible bonds are for a period of 3 years with an annual interest rate of 1%. Alibaba may exercise the conversion right to convert into Meitu shares at a price of HK$6.00 per share within 5 working days from the issuance date to the expiration date.
According to the announcement, Meitu and Alibaba will carry out in-depth cooperation in the fields of e-commerce and model development.
Alibaba will prioritize the promotion of Meitu’s AI e-commerce tools on its e-commerce platforms, and assist Meitu in developing new data-driven tools and new functions for e-commerce image and video generation to improve the marketing and operational efficiency of Alibaba e-commerce platform merchants.
Alibaba will provide technical support for Meitu’s core business to meet the computing power needs of Meitu’s AI products, such as inference and training.
Meitu has promised to purchase no less than 560 million yuan of cloud services from strategic investor Alibaba in the next three years.
In addition, the two parties will explore more differentiated and innovative projects to create unique experiences for users of their respective platforms.
At present, the two parties have signed an investment agreement, and the final delivery is subject to relevant government approval and other prerequisites, including but not limited to the approval of the Hong Kong Stock Exchange to convert shares for listing, and the approval of the National Development and Reform Commission for bond issuance.
