Kaixin Auto inks non-binding acquisition term sheet with WM Motor

Shanghai (Gasgoo)- Kaixin Auto Holdings (“Kaixin”), a Chinese leading new auto retail platform for luxury used cars and imported new cars, has officially declared its non-binding acquisition intentions with WM Motor Holdings Limited ("WM Motor"), the company announced on Monday.

The plan involves issuing a certain number of new shares to acquire 100% equity held by WM Motor's shareholders.

All-new WM Motor's M7; photo credit: WM Motor

According to Kaixin's statement, WM Motor, established in late 2015, stands as a versatile player in the field of new energy intelligent vehicles, boasting expertise in design, R&D (both hardware and software), supply chain management, complete vehicle and battery pack manufacturing, online digital marketing, offline sales and services, and automotive finance. It holds core technologies in areas such as vehicle integration, key electric power systems, intelligent cabins, and autonomous driving. WM Motor has successfully developed and delivered four models – the E5, the EX5, the EX6, and the W6, with the imminent delivery of the M7. These vehicles have been delivered in over 200 cities across China, surpassing 100,000 units in cumulative delivery volume.

Presently, WM Motor operates two Industry 4.0-standard intelligent manufacturing bases – one in Wenzhou city and the other in Huanggang city. It ranks among the few Chinese new energy vehicle startups to hold both its own intelligent manufacturing factories and two new energy passenger vehicle manufacturing licenses.

Kaixin Auto Holdings is one of the primary dealership networks in the premium used car segment and new car sales in China. Supported by the rapid growth of China's used car market and leveraging its own hybrid business model that offers both strong online and offline presence, Kaixin is in the process of transforming from a nationwide dealerships network to one of the important players in China's electric vehicle market.

As publicly disclosed, Kaixin ventured into the used car retail sector in 2017, went public on NASDAQ in 2019, and in August 2021, announced the establishment of its new energy vehicle division.

It's worth noting that WM Motor recently released a statement via its official Weibo account, indicating that, after careful consideration, it voluntarily terminated the reverse takeover (RTO) process with Apollo Future Mobility Group on the Hong Kong Stock Exchange.