Shenzhou car rental “sell the body” twists and turns: SAIC withdraws from the BAIC takeover, what cards are played by both parties?

Original title: Shenzhou car rental “sell body” twists and turns! SAIC exits, BAIC takes over! What cards did the two sides play? The company responded
As the core asset of the China Department, the divestiture of China Rent a Car from the “China Department” can be described as twists and turns. After several rounds among potential buyers such as Huaping Investment, BAIC and SAIC, today, SAIC just announced the termination of the acquisition, and China Automobile announced that its old friend BAIC would take over.
From Tianyan’s investigation, Lu Zhengyao, the founder of Shenzhou Car Rental, also served as the chairman of Baowo Automobile. For Baowo Automobile, the Shenzhou Department bought it from BAIC. Although Baowo Auto’s assets eventually returned to BAIC due to the debt of the China Department, BAIC’s layout for travel made it cooperate with China again. Several analysts told e reporters that this is also one of BAIC’s measures to destock new energy vehicles.
Shenzhou car rental “sell body” twists and turns, plans to re-enter BAIC embrace
On July 20, UCAR announced that it would transfer its holding company, Shenzhou Car Rental (00699.HK), for no more than 4.43 to Jiangxi Jinggangshan Beiqi Investment Management Co., Ltd. or its designated third party at a price of 3.1 Hong Kong dollars per share. 100 million shares, the transfer consideration is up to 1.372 billion Hong Kong dollars. UCAR announced today that it received an investigation notice from the China Securities Regulatory Commission because of suspected violations.
As of today’s suspension of trading, China Car Rental reported HK$2.93/share, down 4.87%.
According to the data of Tianyancha, the majority shareholder of Jinggangshan Beiqi Investment is Beijing Automobile Group Industrial Investment Co., Ltd. (40% shareholding), which is a wholly-owned subsidiary of Beiqi Group. After the completion of the transaction, UCAR will no longer hold shares in China Auto Rental, and BAIC will hold approximately 20.87% of China Auto Rental.
The relevant person in charge of China Automobile told e reporter that China Automobile had signed a strategic cooperation agreement with BAIC Group on May 31. According to the agreement, BAIC Group will acquire no more than 451 million shares from China Automobile, which is equivalent to The total issued share capital is approximately 21.26%. As early as April this year, BAIC Group and China Automobile Group also jointly announced that the two parties will reach comprehensive strategic cooperation through vehicle procurement, new car retail, technical cooperation, big data and financial services.
It is worth noting that just earlier today, SAIC, which has always been regarded by the outside world as the receiver, announced the termination of the acquisition.
SAIC Group announced at noon on July 20 that it had previously planned to purchase no more than 613 million shares of Shenzhou UCAR and Amber Gem at a price of 3.1 Hong Kong dollars per share, with an investment amount not exceeding 1.902 billion Hong Kong dollars. However, during the negotiation process of the subsequent equity transfer agreement, new conditions affecting the above-mentioned transaction occurred. The two parties of the transaction failed to reach agreement on the prerequisites for delivery within the planned time. In order to protect the interests of the company, SAIC Hong Kong decided to terminate the above transaction. It only lasted more than half a month from the announcement of the acquisition to the termination.
“The prerequisites that the two parties have not agreed on are mainly related to the future operation of car rental in China,” Chen Hong, chairman of SAIC Group, explained at the first extraordinary general meeting in 2020 held today, “we are not just talking about acquisitions when we buy a company. , And more importantly, the post-acquisition operations, and in a responsible attitude to the interests of the company and shareholders, we terminated the transaction in a timely manner.”
Prior to this, Amber Gem (a subsidiary of Huaping Investment), one of the main shareholders of China Car Rental, signed a sales agreement with China UCAR, planning to acquire 17% of the shares held by China UCAR in two batches. But after the first batch of acquisitions was completed, the two parties terminated the agreement.
In recent years, Shenzhou Car Rental has repeatedly reported that it will be acquired, including Ctrip.com,
Geely
Etc. were once rumors of the purchaser, but in the end the related acquisitions were not realized.
The origin of Shenzhou and Beiqi
In April of this year, Ruixing Coffee of the Chinese department exposed its financial fraud and was subsequently forced to delist by the US Securities and Exchange Commission (SEC). The car rental in China was affected by this, the stock price plummeted, and the market value once evaporated more than 4.6 billion yuan. At the same time, Ruixing, after defrauding the market, will still face investor litigation and huge compensation. As the head of the Shenzhou Department, Lu Zhengyao is eager to sell the equity of Shenzhou Car Rental, the core asset of the Shenzhou Department, to ease the pressure on funds.
Although China Car Rental CFO Cao Guangyu had expressed concern about the refinancing of China Rent a Car after the thunderstorms of Ruixing Coffee at the China Car Rental First Quarter 2020 Performance Meeting, and China Rent a Car