China Rent-a-Car changes ownership: SAIC abandons BAIC’s takeover news leaked ahead of schedule

Original title: Shenzhou car rental “changed ownership” changed: SAIC abandoned BAIC and then took over, the news was leaked in advance that Shenzhou UCAR was investigated?
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The head of the “Shenzhou Department” Lu Zhengyao was deeply involved in the financial fraud of Ruixing Coffee. The news of the change of ownership of Shenzhou Car Rental (00699.HK) has also been fermented in the capital market many times, attracting the attention of regulatory authorities.
On the evening of July 20, UCAR (838006.OC) announced that the China Securities Regulatory Commission decided to file an investigation against the company due to the company’s suspected violations of information disclosure.
Earlier on the same day, China Rent-A-Car announced that its shareholders, China UCAR and Jinggangshan BAIC, had signed a sale and purchase agreement on July 20, 2020. The content involved Jinggangshan BAIC’s acquisition of 443 million shares of the company from the seller of China UCAR at a price of HK$ 3.10 per share. The consideration is HK$1.372 billion. At the same time, shareholder Amber Gem has signed a takeover offer with Jinggangshan BAIC on July 20, 2020. The content relates to the proposed acquisition of no less than 171 million shares from Amber Gem by Jinggangshan BAIC at a price of HK$3.10 per share and a total consideration of HK$529 million.
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From the timeline, July 20, 12:04
(600104.SZ) announced the termination of the acquisition of China UCAR and Amber Gem’s shares in China Rent-A-Car; at 12:40, China Rent-A-Car announced on the Hong Kong Stock Exchange to temporarily suspend trading; at 13:05, the media revealed that BAIC Group plans to restart the acquisition of China Rent-A-Car ; At 15:35, UCAR announced the transfer of all shares held by UCAR to BAIC Investment Management Co., Ltd. at 3.1 Hong Kong dollars per share.
It can be seen that the media revealed that BAIC’s acquisition of China Rent-A-Car was indeed much earlier than the after-market announcement of China UCAR.
From the perspective of stock price changes, China UCAR has been suspended since the end of June, while China Rent-A-Car fell by more than 11% in the morning of July 20, and it had narrowed to a drop of 4.87% before the midday suspension.
On June 1, China Rent-A-Car issued an announcement announcing that China-UCAR had signed a strategic cooperation agreement with BAIC Group on May 31. BAIC Group will acquire no more than 21.26% of China Rent-A-Car.
Due to the close ties between BAIC Group and the China Department, the industry was once optimistic about the two parties reaching a deal. On the one hand, the Shenzhou Department previously acquired Borgward Automobile from Beiqi Foton. On the other hand, BAIC Group is also deploying its travel business, and the acquisition of Shenzhou Car Rental is reasonable.
However, a variable happened midway, and the “acceptor” became SAIC.
On the evening of July 2nd, China Car Rental announced that SAIC Motor Hong Kong, a wholly-owned subsidiary of SAIC Motor, intends to acquire no more than 612.6 million shares of China Car Rental held by China UCAR and Amber Gem at a price of 3.10 Hong Kong dollars per share. , Accounting for 28.92%, and the total consideration is at most HK$1.898 billion.
However, after 20 days, SAIC terminated the acquisition plan.
On July 20, SAIC Motor announced that SAIC Hong Kong, a wholly-owned subsidiary of the company, has decided to terminate the transaction plan to acquire shares in China Car Rental. SAIC Motor stated that in the process of subsequent equity transfer agreement negotiations, new circumstances that affected the conclusion of the transaction occurred. The two parties failed to reach an agreement on the preconditions for delivery within the scheduled time. To protect the company’s interests, SAIC Hong Kong decided to terminate the transaction.
On the same day, Chen Hong, chairman of SAIC Motor, responded to the reason for the sudden termination of the acquisition of China Rent-A-Car at SAIC’s first extraordinary general meeting of shareholders in 2020. Chen Hong said that during the negotiation process, some of the prerequisites for delivery failed to reach an agreement, mainly regarding the future operation of Shenzhou Car Rental.
Regarding the BAIC Group’s takeover of the “Shenzhou-based” assets, relevant personnel of BAIC Group told the media that in recent years, BAIC Group has accelerated its transformation into a manufacturing service-oriented and innovative enterprise, and actively deployed the shared travel field. The strategic cooperation between BAIC Group and UCAR will give full play to its core advantages in vehicle R&D and manufacturing, engine technology and new energy technology, develop customized smart new energy vehicles with battery swapping modes, and promote the application in the field of travel on a large scale.
Some analysts believe that BAIC’s move can not only lay out the field of travel, but also allow it to take on the important task of digesting inventory, especially the business of new energy vehicles.