BAIC Group to acquire 21.26% stake in car rental service provider CAR Inc.

Shanghai (Gasgoo)- UCAR, a Chinese app-based chauffeured car service provider, signed on May 31 a non-legally binding strategic cooperation agreement with BAIC Group, pursuant to which the latter will acquire no more than 450,790,855 shares from UCAR, which represented roughly 21.26% of the total issued share capital of CAR Inc., the Hong Kong-listed car rental arm of UCAR.

CAR Inc. announced its substantial shareholders—Amber Gem and UCAR—agreed on May 30 “not to proceed with the Second Tranche Share Acquisition under the Sale and Purchase Agreement, terminate the Sale and Purchase Agreement, and release UCAR from its exclusivity obligations to consider other potential transactions.” 

(Photo source: CAR Inc.)

The details and terms of the transaction between UCAR and BAIC Group are still under negotiation and no definitive term has been agreed as of the announcement date. CAR Inc. also stressed that the newly-signed agreement is non-legally binding in nature and there is no assurance that the formal agreement will be reached.

BAIC Group and UCAR stated in this year's April that both parties agreed to carry out a strategic cooperation on vehicles procurement, automobile new retail, big data, finance services and other businesses related to mobility services.

Under the agreement, two companies intended to jointly develop the intelligent NEVs that are tailored for mobility service or available for swapping batteries. The joint building of smart service and marketing systems are also part of the collaboration. UCAR would offer user the services like daily car rental, designated driving and finance lease in a more flexible way, and expand the market with the joint efforts of BAIC Group and Beijing Borgward, whose chairman Lu Zhengyao also chairs UCAR.