BEIJING, June 6, 2016 /PRNewswire/ -- Bitauto Holdings
Limited (NYSE: BITA) ("BitAuto" or the "Company"), a leading
provider of internet content and marketing services for
China's fast-growing automotive
industry, Tencent Holdings
Limited (SEHK: 00700) ("Tencent"), a leading provider of comprehensive
internet services in China, Baidu,
Inc. (Nasdaq: BIDU) ("Baidu"), the leading Chinese language
internet search provider, and JD.com, Inc. (Nasdaq: JD)
("JD.com"), the leading online direct sales company
in China, today jointly announced that they have entered
into definitive agreements pursuant to which Tencent, Baidu and JD.com each agree to invest
US$50 million in Bitauto.
Tencent, Baidu and JD.com each
agree to purchase 2,471,577 newly issued ordinary shares of Bitauto
at US$20.23 per share, corresponding
to US$20.23 per American depositary share of Bitauto
("ADS"), each representing one ordinary share of the Company. The
purchase price represents the average volume weighted closing
trading price of Bitauto's ADSs for the five trading days
prior to the signing of the definitive agreements. The transaction
is subject to customary closing conditions.
Bitauto also announced that pursuant to definitive agreements
entered into by and between Bitauto and PA Grand Opportunity
Limited ("PAG"), the Company agrees to issue convertible bonds
("CBs") to PAG and/or its affiliates in an aggregate principal
amount of up to US$150 million. The
CBs will be due in five years from the date of issuance and will
have an interest rate of 2.00% per annum. At any time after three
months of the CBs issuance, at the option of the holders, the CBs
are convertible into ordinary shares or ADSs of the Company. The
initial conversion price will be US$23.67 per ADS. Mr. William Li, chief
executive officer and chairman of Bitauto will indirectly
purchase a portion of the CBs through PAG under a total return swap
arrangement with PAG.
The Company intends to use the proceeds from the new share
issuance and the CB issuance for general corporate purposes.
Upon the closing of both transactions, Tencent, Baidu, JD.com and holders of the CBs
will hold 7.1%, 3.2%, 23.5% and 8.2%, respectively, of the
Company's outstanding shares on a fully diluted basis taking into
effect the new issuance and the conversion of the CBs at the
initial conversion price.
Mr. Li commented, "We are delighted to announce today the
strengthening of our strategic partnership with JD.com and
Tencent, and the establishment of a
new partnership with Baidu, the leader in Chinese language online
search. We are also pleased to welcome PAG, a leading regional
private investment firm, as an important investor. My personal
participation in this transaction is a further testament to
management's strong confidence in Bitauto's future
development."
"Through our cooperation over the past year with JD.com and
Tencent, China's leaders in world-class e-commerce,
social media and big data, we have gained tremendous momentum in
making Bitauto the industry leader in online automobile
transactions. Through our new partnership with Baidu, we expect to
leverage its leadership in mobile and desktop online search, big
data and transaction services platforms for additional strategic
advantages as we continue to create the industry leading new and
used car purchasing experience for customers in China."
About Bitauto Holdings Limited
Bitauto Holdings Limited (NYSE: BITA) is a leading provider of
internet content and marketing services for China's fast-growing automotive industry.
Bitauto manages its businesses in three segments: its
advertising and subscription business, transaction services
business and digital marketing solutions business.
Bitauto's advertising and subscription business offers
advertising and digital marketing solutions to automakers and
automobile customers in China.
Bitauto provides a variety of advertising services mainly to
automakers through its bitauto.com and taoche.com websites, which
provide consumers with up-to-date new and used automobile pricing
and promotional information, specifications, reviews and consumer
feedback. Bitauto also offers subscription services via its EP
platform which provides web-based and mobile-based integrated
digital marketing solutions to automobile customers in China. The platform enables dealer subscribers
to create their own online showrooms, list pricing and promotional
information, provide dealer contact information, place
advertisements and manage customer relationships to help them reach
a broad set of purchase-minded customers and effectively market
their automobiles to consumers online. In 2014, Bitauto began
providing automobile customers with transaction services on its EP
platform, including automobile transaction, CRM and online
automotive financial platform services, which are intended to
optimize the automobile purchase experience and facilitate
completion of transactions. Bitauto's digital marketing solutions
business provides automakers with one-stop digital marketing
solutions, including website creation and maintenance, online
public relations, online marketing campaigns and advertising.
For more information, please visit ir.bitauto.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, the quotations from management in this announcement
contains forward-looking statements. Bitauto may also make written
or oral forward-looking statements in its periodic reports to the
U.S. Securities and Exchange Commission, in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about Bitauto's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: our goals and strategies; our future business
development, financial condition and results of operations; the
expected growth of the automobile industry and the internet
marketing industry in China; our
expectations regarding demand for and market acceptance of our
services and service delivery model; our expectations regarding
enhancing our brand recognition; our expectations regarding keeping
and strengthening our relationships with major customers, partner
websites and media vendors; relevant government policies and
regulations relating to our businesses, automobile purchases and
ownership in China; our ability to
attract and retain quality employees; our ability to stay abreast
of market trends and technological advances; competition in our
industry in China and
internationally; general economic and business conditions in
China; and our ability to
effectively protect our intellectual property rights and not
infringe on the intellectual property rights of others. Further
information regarding these and other risks is included in
Bitauto's filings with the Securities and Exchange Commission,
including its annual report on Form 20-F. All information provided
in this press release and in the attachments is as of the date of
this press release, and Bitauto undertakes no duty to update any
forward-looking statement as a result of new information, future
events or otherwise, except as required under applicable law.
For investor and media inquiries, please contact:
Bitauto
IR Department
Bitauto Holdings Limited
Tel: +86-10-6849-2145
ir@bitauto.com
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SOURCE Bitauto Holdings Limited