SAIC Motor to acquire 28.92% stake in CAR Inc. for mobility service development

Shanghai (Gasgoo)- SAIC Motor announced on July 2 that its wholly-owned subsidiary SAIC Motor HK Investment Limited (SAIC HK) plans to acquire not fewer than 613,377,424 shares in CAR Inc., a Hong Kong-listed mobility service provider, from the latter's two substantial shareholders.

Specifically, SAIC HK intends to acquire not more than 442,656,855 shares in CAR Inc. at a price of HK$3.10 per share from UCAR Limited, UCAR Service Limited and UCAR Technology Inc. (collectively, the “UCAR Sellers”) for a maximum total consideration of HK$1,372,236,250.50, according to CAR Inc., citing an offer letter signed on July 2 by SAIC HK, the UCAR Sellers and UCAR Inc., a substantial shareholder of CAR Inc.

Proceeds from the selling of shares by UCAR Inc. shall be used to repay the loans of UCAR that are secured by the shares first.

The aforementioned UCAR Sellers are all wholly-owned subsidiaries of UCAR Inc.

On the same day, SAIC HK and Amber Gem Holdings Limited (Amber Gem), another substantial shareholder of CAR Inc., entered into an agreement about the proposed acquisition of not fewer than 169,617,948 shares in CAR Inc. from the latter at a price of HK$3.10 per share for a total consideration of HK$525,815,638.80.

Based on the aforesaid transactions, SAIC UK is expected to acquire 28.92% of the total issued share capital in CAR Inc., according to CAR Inc.’s announcement.

(Photo source: CAR Inc.)

As of the announcement date, UCAR Inc., through its subsidiaries, and Amber Gem are interested in 442,656,855 and 312,956,260 shares in CAR Inc. respectively, accounting for roughly 20.87% and 14.76% of CAR Inc.'s total issued share capital.

SAIC Motor said it strives to grasp the industrial development trend to speed up the innovative transition from being a traditional manufacturer to being a comprehensive supplier of mobility services and products. As a domestic leading car rental service provider, CAR Inc. boasts mature operation and management experience in relevant area. Completing the acquisition would help SAIC Motor accelerate its development of mobility service business. In addition, both parties can make joint efforts to improve assets utilization and explore innovative service models.