BAIC Group plans to acquire 21.26% stake in CAR Inc

On June 1, CAR Inc announced that it had signed a non-legally binding strategic cooperation agreement with Beijing Automotive Industry Holding (BAIC) on March 31.

On June 1, CAR Inc announced that it had signed a non-legally binding strategic cooperation agreement with Beijing Automotive Industry Holding (BAIC) on March 31.

According to the agreement, BAIC Group will acquire no more than 451 million shares of UCAR, accounting for approximately 21.26% of the total share capital of CAR Inc.

The details and terms of this cooperation are still under negotiation.

After the news was released, the pre-bid price of CAR Inc once rose nearly 11%, and today the stock price opened 7.78% higher.

In addition, the announcement stated that the second batch of acquisition agreements previously signed between Warburg Pincus and UCAR had been terminated, and Car Inc’s exclusive obligation to seek other potential acquirers was released.

Previously, on April 22, UCAR completed the sale of approximately 98.61 million shares to Warburg Pincus, and the car rental shares owned by UCAR decreased from 25.92% to 21.27%.

If the transaction with BAIC Group is completed, this share of equity will be significantly reduced.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/01/baic-group-plans-to-acquire-21-26-stake-in-car-inc/.

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