Gasgoo.com (Shanghai May 4th)- Recently, AutoHome’s management alteration storm has attracted wide attention from the industry. From its major shareholder Telstra’s announcement to sell the equities to its management’s initiating privatization, Pingan Trust’s joining added more concerns to the storm.
Different Targets increases great difficulties in achieving Win-Win Position
Pingan Trust’s target of obtaining several hundred million RMB investment incomes in five years makes no consensus with AutoHome’s future strategic plan and development direction. It’s learned that Pingan Trust is actively collecting funds from SPV. According to agreement, the fund transferred to Telstra will be raised by the end of May if comes smooth. In the meantime, AutoHome’s management team is actively promoting the privatization process. One relevant person said that, “It took ten years for AutoHome to grow up. The development of a company brought great risks and took a long time. AutoHome’s long-term development is its management’s target.”
Fight may bring Lose-Lose end
For AutoHome, the different targets between its management team and major shareholder may probably bring a bloodbath to the management. Besides, the trade also plants hidden danger for Pingan Trust.
It’s revealed that Pingan Trust should register to NDRC and obtain a confirmation letter before the buy-out. However, till now Pingan has no clear declaration of whether it has obtained the confirmation or not. If the assignment of the agreement with Telstra comes before obtaining the confirmation, Pingan Trust had violated some regulations.
On the other hand, Pingan Trust will actively promote the AutoHome’s privatization and its return to A-share market. A backdoor listing needs a three-year steady growth, which cannot leave the management team’s strong support. If facing disputes and fights, Pingan Trust may probably come in failure in this investment.
How to Break the Ice?
Insiders believe a friendly negotiation is the best choice for both sides. The management system and operation model of an Internet Company is quite different from a traditional trust company. An Internet Company needs a professional and experienced management team. If target achieved, AutoHome’s management will make it an important company, which should be supported by Pingan Trust’s funds. Based on AutoHome’s steady growth, Pingan Trust may harvest long-term profits for its financial investors.
