Premium 18percent! North Asias largest PE plans to privatize Shenzhou car rental to help its long-term development

category:Finance
 Premium 18percent! North Asias largest PE plans to privatize Shenzhou car rental to help its long-term development


We are very happy to have the positive response and wide support of China rental car and several major shareholders to the transaction, an ambokee spokesman told surging news. So far, for the proposed proposal, we have obtained 47% of the companys issued share capital, which also proves that the price we offer to the companys shareholders is very attractive. On this basis, we believe that ambok can provide the necessary investment to help improve the travel service quality of Chinese consumers.

Founded in 2005, ambok is one of the largest private equity funds in Asia, with more than $22 billion in managed capital, according to the Shenzhou car rental announcement. Ambok focuses on North Asia and has expertise in various industries, including consumer and retail, telecommunications and media, financial services, health care, logistics and industry. Amboks 41 portfolio companies have total revenues of more than $44.1 billion.

It has obtained 47% shares of Shenzhou car rental Co., Ltd

On November 10, Shenzhou Youche announced that the company intends to transfer 442 million shares of Shenzhou car rental to ambok at the price of HK $4.00 per share, with the transfer consideration of HK $1.771 billion. At this point, anbokai will obtain 20.86% equity of Shenzhou car rental.

On November 13, Lenovo Holdings (03396. HK), another shareholder of Shenzhou car rental, announced that its legionelite and Grand Union had entered into an agreement with ambok to sell 564 million shares of Shenzhou car rental at a total cash price of HK $2254 million, accounting for 26.56% of the issued share capital of Shenzhou car rental.

If the sale is completed, Lenovo will no longer hold any shares of Shenzhou car rental, and Shenzhou car rental will no longer be an associate of Lenovo.

If the above two transactions are completed, anbokai will hold 47.42% shares of Shenzhou car rental.

It is worth mentioning that in August this year, Shenzhou car rental also issued a clarification notice, saying that the company did not discuss any privatization transaction with ambok.

On the reasons and benefits of the transaction, Shenzhou car rental said in the announcement that the company has been facing severe challenges, including the weakening of travel and consumption enthusiasm due to the uncertainty of the external environment. Although the company has launched a number of promotional programs and various digital marketing activities to alleviate the low car rental demand in the past, the companys financial performance is still under pressure.

Shenzhou car rental said the offeror was committed to promoting the companys long-term development despite the companys challenges. In the face of these challenges, in order to keep the company competitive in the highly competitive car rental industry, it must continue to innovate technology and explore innovative business models to ensure the continuous provision of high-quality car related services, which will require substantial investment in the next few years. Considering the declining trend of stock price and the low liquidity of shares, the listing status of the company is no longer a feasible source of necessary investment.

In addition, due to the huge potential market, high capital density and the destruction of various service modes to the industry, Chinas car rental market is still fragmented. The offeror believes that with amboks strong industry expertise and strong financial position, the transaction will put the company in a favorable position to benefit from the long-term growth trend in China.

Shenzhou car rental also said that the transaction will also bring stability to the companys equity base, thus helping to stabilize the companys business operations, and support the rating agencies views on the companys prospects and ability to fulfill its obligations, which have been negatively affected by changes in the companys equity structure.

On the other hand, ambok said that the transaction will give Shenzhou car rental an opportunity to make better use of amboks financial resources, industry experience and local insight, and will help Chinas long-term development of car rental, so as to further improve the quality of automobile related travel services for Chinese consumers.

As for the reason why Shenzhou car rental can get a premium of 18%, ambok told the surging news reporter that the HK $4 per share offer was a valuation based on various factors, including market conditions and the companys business performance.

An ambok spokesman said the offer provides shareholders with an opportunity to cash in their investment in the company immediately at an attractive premium. Amboke believes that the price reflects various factors such as the asset value, profitability, financial status and future growth potential of Shenzhou car rental.

It is worth noting that ambok has rich investment experience in the car rental industry. It has participated in the investment of ktrental, the largest car rental enterprise in South Korea, and holds a minority stake in yihi car rental. It is understood that Chinas car rental industry only accounts for less than 1% of Chinas travel service market. However, some data show that in recent years, the industry has gradually entered the period of integration, with huge development potential. In the long run, with the continuous expansion of Chinas middle class, more and more consumers value business demand or leisure tourism, and the demand for car rental will remain strong for a long time. Ambok said the deal will also help to promote a more dynamic and healthy car rental and travel industry in China, thereby promoting the development of Chinas internal circular economy by continuously creating and meeting consumers demand for car travel. Source: surging news editor: Zhong Qiming_ NF5619

It is understood that Chinas car rental industry only accounts for less than 1% of Chinas travel service market. However, some data show that in recent years, the industry has gradually entered the period of integration, with huge development potential. In the long run, with the continuous expansion of Chinas middle class, more and more consumers value business demand or leisure tourism, and the demand for car rental will remain strong for a long time.

Ambok said the deal will also help to promote a more dynamic and healthy car rental and travel industry in China, thereby promoting the development of Chinas internal circular economy by continuously creating and meeting consumers demand for car travel.