CAR Inc announced that its main shareholder Grand Union Investment Fund, L.P. will transfer 125.4 million of its CAR Inc shares to the operator of UCAR chauffeur service, Youche Technology, at HK$13.5 per share for a total of around US$210 million.
CAR Chauffeur's app
Grand Union will still be the majority shareholder of CAR Inc after the transfer with a 23.69% stake, while Youche Technology will hold 5.28% of CAR Inc.
Youche Technology will get a seat on CAR Inc’s board of directors vacated by CAR Inc’s non-executive director Erhai Liu.
CAR Inc had previously invested US$175 million in Youche Technology’s two financing rounds and holds a 9.85% stake in the UCAR operator.
Youche Technology adopts a B2C chauffeur management model and draws its entire motor pool from licensed car rentals, and CAR Inc is its main supplier.
Youche Technology recently raised US$550 million in its B Series financing round, from a group of seven Chinese and foreign investors that include Industrial Asset Management, New China Wealth and Asset Management, China Chengtong and Real Sun.
Youche Technology’s original shareholders – US-based Warburg Pincus, CAR Inc and Legend Capital – also participated in the investment round. The estimated value of Youche Technology has been boosted to US$3.55 billion after this round of financing.(Translation by David)
