Author Chai Jiayin
After three months of ups and downs, Lu Zhengyao finally sold the cornerstone of his “capital empire”-Shenzhou Car Rental.
On the evening of July 20, 2020, UCAR announced that it intends to transfer no more than 443 million shares of its holding company Shenzhou Rental Car to Jiangxi Jinggangshan BAIC Investment Management Co., Ltd. or its designated third party at a price of 3.1 Hong Kong dollars per share. , The maximum transfer price is HKD 1.372 billion.
As of the date of this announcement, China UCAR, through its subsidiaries, is interested in 442,656,855 shares, representing approximately 20.87% of the total issued share capital of the company. After the completion of the sale of shares of UCAR and assuming there are no other changes in the company’s share capital, UCAR will no longer hold any shares.
Just a few hours before the announcement of UCAR, SAIC stated that its wholly-owned subsidiary SAIC Hong Kong had terminated the acquisition of no more than 613 million shares in China Rent-A-Car.
This means that BAIC, which was “cut off” by SAIC Motor 18 days ago, “takes over” again and becomes the last buyer of China Rent-A-Car.
“Selling one’s body” has twists and turns
In April 2020, Luckin Coffee exposed financial fraud and was subsequently forced to delist by the US Securities and Exchange Commission. China Rent-A-Car was implicated, its share price plummeted, its market value was cut in half, and rumors of “selling oneself” continued.
After the intentional acquisitions of Warburg Pincus, BAIC and SAIC, China Rent-A-Car’s “selling” can be described as twists and turns.
On April 16, 2020, China Car Rental announced that Amber Gem Holdings Limited (hereinafter referred to as Amber Gem) will acquire 98.6 million shares of the company at a price of HK$2.30 per share.
Public information shows that Amber Gem is a subsidiary of the global private equity giant Warburg Pincus, and Warburg Pincus is an early investment institution of China Rent-A-Car. According to CVSource investment data, Warburg Pincus had invested 200 million yuan in a Series B investment in China Car Rental in July 2012.
According to the announcement, the content included that Amber Gem purchased 98.6 million shares of the company from a wholly-owned subsidiary of UCAR at a price of HK$2.30 per share on April 16, 2020 (the first share purchase). In addition, Amber Gem will conditionally acquire shares from a wholly-owned subsidiary of UCAR at a price of HK$3.40 per share for a total consideration of no more than US$116 million (approximately 820 million US dollars), which is not much calculated at the exchange rate of US$1 to HK$7.7525 In about 264 million shares (the second batch of shares acquisition).
But after the first batch of acquisitions was completed, the two parties terminated the agreement.
On June 1, 2020, China Car Rental announced that China UCAR had entered into a non-legally binding strategic cooperation agreement with BAIC Group on May 31. According to the strategic cooperation agreement, BAIC Group will purchase no more than 451 million shares from China UCAR, which is equivalent to 21.26% of the company’s total issued share capital.
But since then, there has been no news of the acquisition of BAIC Group.
On July 2, 2020, BAIC Group’s “hustle-cutters” appeared. On the same day, SAIC Hong Kong signed the “Takeover Offer” with UCAR and its subsidiaries and Amber Gem. According to the relevant content of the offer, SAIC Motor Hong Kong intends to acquire no more than 613 million shares of Shenzhou UCAR and Amber Gem in the form of cash contribution at a price of 3.1 Hong Kong dollars per share, and the investment amount shall not exceed 1.902 billion Hong Kong dollars.
On July 20, 2020, SAIC stated in an announcement that in the process of subsequent equity transfer agreement negotiations, new circumstances affecting the conclusion of the above transaction occurred. The two parties failed to reach an agreement on the preconditions for delivery within the scheduled time, in order to protect the company’s interests. , SAIC Hong Kong decided to terminate the above transaction.
As the formal agreement has not been signed, SAIC said that the termination of this transaction will not affect the company’s production, operation and development, and there is no situation that would harm the company and all shareholders.
After that, China Rent-A-Car shares in
Hong Kong Stock Exchange
Trading was suspended, and the two US dollar bonds both set Ruixing’s biggest one-day decline since its exposure to financial fraud.
“The prerequisites that the two parties did not agree on are mainly related to the future operation of China Car Rental,” SAIC Chairman Chen Hong explained at the 2020 First Extraordinary General Meeting of Shareholders on July 20, 2020. “We
Last night, Lu Zhengyao finally sold the Shenzhou car rental completely
Author Chai Jiayin