Private equity firms Apollo Global Management and Pangaea One have exited their stakes in Chinese car dealership NGCA Holdings as part of a $305m buyout.
China Baoxin Auto agreed the acquisition of the company, which was also part-owned by Citigroup, according to a filing with the Hong Kong Stock Exchange.
The purchase represents a discount of 0.7 per cent to the stock’s HK$4 closing price on the last day before the trade was announced, but a premium of 3.7 per cent based on the average closing price for the previous 30 days.
NGCA boasts eight BMW/Mini dealerships and two Jaguar & Land Rover dealerships as well as a single concession each selling Porsches and Volvos respectively.
Much of its business is based in the northeastern and northwestern parts of China including Beijing, Hebei province, Liaoning province, Shaanxi province, Shandong province, Tianjin and the Xinjiang Uyghur Autonomous Region.
Private equity firm Warburg Pincus stepped in with a $200m investment in China Auto Rental in July after the company was forced to scrap its planned IPO amid market instability.
The Legend Holdings-backed company said it plans to pay down debt and renew the expansion of its 32,000-strong fleet it had hoped to achieve through the $137.5m-targeting Nasdaq listing.
Warburg’s investment is the largest equity financing in China’s car rental industry to date, followed by Legend’s strategic investment in China Auto in August 2010.
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