Zhenai, a China-based online dating platform backed by internet company IAC, is planning a listing via a reverse merger with aircraft parts manufacturer DEA General Aviation, China Money Network has reported.
Founded in 2005, Zhenai now has more than 100 million registered members across China, up from 30 million in 2011 when IAC acquired a 20% stake in the company for an undisclosed sum through one of its own online dating subsidiaries, Match.com.
DEA, a Shenzhen-listed manufacturer of home appliances such as rice cookers and ovens as well as civil aircraft parts and engines, is planning to issue new shares to acquire 100% of Zhenai, according to a regulatory filing.
The companies are still finalising the reverse merger so no official agreement has been signed yet, and the filing did not contain any details about the likely size of the offering or Zhenai’s expected valuation.
DEA’s new shares will be issued once Zhenai has unwound its variable interest entity, a legal structure that enables China-based companies to tap overseas capital without violating regulatory restrictions on foreign investment.
In addition to its online dating platform, Zhenai employs a team of 3,000 trained matchmakers who offer advice to members. DEA said it is acquiring Zhenai to transform itself from a conventional original equipment manufacturer to a consumer services provider.
Zhenai announced in 2008 that it had raised a total of $11m in two previous rounds but did not reveal the names of its investors. The company generated RMB1bn ($145m) in revenues and around RMB100m in net profits in 2016.