By Chris Wack

Leju Holdings Ltd. shares were up 65% to $6.17 after the company said was it aware E-House Enterprise Holdings Ltd. will buy a 56% interest in Leju's issued share capital from Xin Zhou, Leju's executive chairman, and certain of his affiliated entities, and SINA Corp.

Leju said E-House has conditionally agreed to buy 49.7 million ordinary shares and 2.2 million American depositary shares of Leju from the Zhou parties by issuing to the Zhou parties 166.9 million E-House shares. It will buy 24.4 million ordinary shares and 36,687 ADSs of Leju from the SINA parties by issuing to the SINA parties 78.7 million E-House shares.

Upon completion of these transactions, Leju will become a subsidiary of E-House and its financial results will be consolidated into the accounts of E-House.

Leju also said that Alibaba has agreed to subscribe for E-House shares to be issued by E-House, which will increase Alibaba's stake in E-House to 8.3%, and subscribe for a convertible note to be issued by E-House that is convertible into E-House shares.

Write to Chris Wack at chris.wack@wsj.com