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Business· TMT· Commercial & Professional Services

Bitauto’s share rose 8.73% as Tencent offered a 16% premium bid

CKN
minutes 2019/09/16 09:00:07
3,424
Bitauto, Tencent Holdings, privatization

Sep 16, 2019 (China Knowledge) - Chinese car shopping guide platform Bitauto (BITA) announced that it has received a non-binding proposal from Tencent Holdings (00700) and Hammer Capital (08078) that they plan to purchase its shares with a 16% premium. Boosted by the news, Bitauto’s share price rose 8.73% to USD 14.95 in the following trading day, with a market value of USD 1.05 bln.

It is reported that shareholders like Li Bin, JD.COM (JD), and Cox Automotive Global, who hold 48.5% of the shares altogether, have agreed to vote for the privatization deal.

Zhang Xu’an, CEO of Bitauto said that if the privatization transaction can be completed, Bitauto will withdraw from the U.S. stock market.

Bitauto is a leading provider of Internet information, marketing services, and trading services for China’s fast-growing auto industry. Its business includes three parts: advertising and subscription business, transaction service business and SAS digital marketing.

According to Bitauto’s Q2 financial report, its revenue reached RMB 2.8 bln (USD 393 mln), up 8.9% YoY. Its net profit attributable to shareholders in the second quarter was negative RMB 145 mln, down 5510% YoY.

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