AutoTrader Group Takes Stake in Bitauto

Bitauto, 11/02/12

Beijing-based automotive website firm Bitauto (NYSE: BITA) today announced that certain existing pre-IPO shareholders of the company have entered into definitive agreements with US digital automotive marketplace AutoTrader Group to sell a 21.8% stake in Bitauto to AutoTrader Group.

Pursuant to the definitive agreements, AutoTrader Group has agreed to purchase 9 mln ordinary shares, representing an approximately 21.8% stake in the company, from the selling shareholders for a total purchase price of USD 58.5 mln in a private transaction. Concurrently, with AutoTrader Group's signing of the definitive agreements, Bitauto's senior management team, namely, William Bin Li, Chairman and Chief Executive Officer, Shao Jingning, President, Andy Xuan Zhang, Chief Financial Officer, and Qu Weihai, Senior Vice President, also entered into definitive agreements with a pre-IPO shareholder of the company pursuant to which they agreed to purchase an approximately 2.4% stake in the company from the selling shareholder for a total purchase price of USD 6.5 mln. The senior management team funded the purchase through a four-year term loan from AutoTrader Group.

The share purchase and sale transactions are expected to close in November 2012, subject to the satisfaction of customary closing conditions.

Keywords: AutoTrader Andy Zhang Shao Jingning Internet Bitauto Qu Weihai BITA investment William Li automobile vertical portal

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