HONG KONG -- SCMP Group, publisher of the English-language daily newspaper South China Morning Post, announced Tuesday that it will enter e-commerce business through acquiring an online fashion retailer. The company aims to diversify its revenue sources from existing media businesses.
SCMP said it has reached an agreement to buy a majority stake in MyDress Holdings, operator of shopping site MyDress. The total consideration for the deal will be around 39.7 million Hong Kong dollars ($5.1 million), according to a press release. After the transaction, SCMP will hold a 56.65% stake in MyDress through its subsidiary.
MyDress launched its shopping site in 2013, and it sells a broad range of fashion items including apparel, accessories and undergarments from more than 50 brands. The retailer posted a net loss of HK$3.1 million for the year ended March.
SCMP also seeks to leverage the infrastructure of MyDress to create e-commerce opportunities for SCMP's magazine websites such as ELLE and Cosmopolitan. "The acquisition underpins the SCMP Group's determination to fortify its digital development growth thrust," said CEO Robin Hu.
SCMP engages not only in publishing newspapers and magazines but also in property investment business. Its revenues in 2014 were HK$1.2 billion and net profit came to HK$137 million. Hong Kong conglomerate Kerry Group is the controlling shareholder of SCMP.