Jessica Rudd pockets $5m after selling the rest of her China ecommerce business to eCargo
Jessica Rudd has sold the remainder of her Chinese ecommerce business Jessica’s Suitcase to eCargo for $5 million cash plus a package of shares.
eCargo jumped 30 per cent to 15c, making it one of the week’s best performing small caps.
Ms Rudd, the daughter of former prime minister Kevin Rudd, first sold 45 per cent of her business Jessica’s Suitcase to eCargo (ASX:ECG) in January and was paid in stock totalling 15 per cent of the Chinese technology group.
eCargo had an option to acquire the other 55 per cent within 18 months for $5 million and 53 million shares — taking Ms Rudd to a maximum of 19.9 per cent.
Jessica’s Suitcase is an ecommerce play funnelling products from Australia wine to baby formula into the Chinese market.
eCargo also today bought 85 per cent of supermarket wholesaler Metcash’s (ASX:MTS) export division, which includes a China subsidiary, for up to $13.4m.
The deal will see eCargo pay $2.5m in cash, another $3.5m as a deferred payment, and 85 per cent of the net value of the business, which is yet to be determined by an auditor but estimated to be between $5.5m and $7.4m.
The acquisition will be funded by a combination cash and debt and is expected to close by the end of February 2019.
Metcash’s sells products to retailers in China, as well as supplying Australian supermarkets.
Metcash’s current head of China operations in Shanghai Will Zhao will take over as CEO. Ms Rudd has beena director of eCargo since January.