AutoBeta(AutoBeta.net)09/14 Report--

On Sept. 13, Internet car platform Yi che announced that its board of directors received non-binding suggestions from Tencent Holdings and Dark Horse Capital on the proposed deal on September 12. According to the content of the proposal letter, Tencent Holdings and Dark Horse Capital plan to buy the outside-issued shares of Yi car and American depositary shares for $16 per share.

If the proposed transaction takes effect, the legal control of the change car will change after the proposed transaction is completed. According to the announcement issued by Yixin Group, the buyer group will acquire the control of Yixin. After the completion of the proposed transaction, in respect of all issued Yixin shares and other securities of the company (except Yixin shares or other securities of the company that have been owned or agreed to be acquired by the buyer group or its concerted actors) Make a possible offer to shareholders and other holders of the company's securities.

The Yixin group's announcement also showed that the board of directors of Yixin group was informed by the change car that the buyer group had reached a number of support agreements with a number of change car shareholders, including JD.com, on the proposed transaction. JD.com has agreed to use all of its barter shares and American depositary shares to vote in favor of the proposed transaction and to roll over up to 15 per cent of all issued mobile car shares to the proposed transaction. As far as Yixin's board of directors knows, JD.com owns about 25.1 per cent of the shares.

In addition, the buyer group also reached an irrevocable commitment with JD.com Finance on the possible offer. As of the date of this announcement, JD.com Financial owns 10.74% of all issued Yixin shares.

According to public information, Yiche was founded in 2000 and listed on the New York Stock Exchange in 2010. In addition, JD.com is the largest shareholder in the company; Li Bin, founder and chairman of the car, is the third largest shareholder with an 11 per cent stake; and Tencent is the sixth largest shareholder with 7.8 per cent. On September 30, 2014, the stock price of Yi car reached 98.28 US dollars. In 2018, Li Bin resigned as CEO and will focus more on Xilai Motor, but retain his position as chairman, and Zhang Xuan, president of Yixin CEO, will take over.

Yixin Group, a Tencent auto finance company, was originally part of the auto finance division of Yi car, which operated independently in 2014 and listed on the Hong Kong Stock Exchange in November 2017 at an offering price of HK $7.7.

On August 28, Yixin Group officially announced its interim results report in 2019. According to the financial report, the company's revenue in the first half of this year was 3.162 billion yuan, up 23% from the same period last year; operating profit was 164 million yuan, compared with an operating loss of 163 million yuan in the same period last year; net profit was 123 million yuan, compared with a net loss of 159 million yuan in the same period last year.

Yixin Group briefly suspended trading on September 13. Yixin Group has not yet announced the reason for the suspension, saying it constitutes inside information about the company. Yixin announced in the evening that trading has now resumed.

As of the suspension time, Yixin closed at HK $1.71, with a total market capitalization of HK $19.894 billion. Yixin hit an all-time low of HK $1.48 last month.

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