On October 11, Shell-W (HK02423, share price of HK $42.2, market value of HK $154.1 billion) announced that it signed an equity acquisition agreement with Love Space, and Love Space will become its wholly-owned subsidiary after the completion of the acquisition, and the transaction consideration will not exceed about 1.55 billion yuan (RMB, the same below). Subject to completion of closing conditions, the transaction is expected to close in the first half of 2024.

Shell-w announcement shows that the company's wholly-owned subsidiary Shell beauty and space wisdom (Love space's corporate body), and Red love space (one of the existing shareholders of Space Wisdom and a connected person of the company) entered into a share acquisition agreement, Shell beauty agreed to buy and Red love Space agreed to sell 7.1092% of space Wisdom, the cash consideration is $12.67 million.
Public information shows that love Space was founded in 2014, headquartered in Beijing, through scientific and technological innovation, the construction of "supply chain, information system, industrial workers" three infrastructure as the pillar of standardized home improvement services, the current service coverage of 14 cities across the country. In the first half of this year, Love Space achieved revenue of more than 1 billion yuan, an increase of 58%.
In recent years, the home improvement business has played an increasingly important role in Shell's business lines. In 2020, Shell launched its own home improvement brand "bed", carried out the "one and two wings" strategic upgrade at the end of 2021, announced the completion of the overall acquisition of the head decoration company Sundu home improvement in April 2022, and upgraded to the "one and three wings" strategy in July this year.
The acquisition of Love Space will further enrich shell-W's home improvement brand and product matrix, meet the needs of a broader user group, improve customer conversion, and enhance supply chain and delivery capabilities, to achieve accelerated breakthroughs in home improvement business.
Shell's financial report shows that in the second quarter of this year, non-property transaction services, including home improvement and shell rental, grew significantly year-on-year, and the proportion of revenue exceeded 20% for the first time. Among them, the home improvement business revenue of 2.6 billion yuan, an increase of 91%.