US-based private equity firm KKR & Co LP has entered an agreement to partially exit from car dealer China Greenland Rundong Auto, which will see the company’s founder regain a majority stake, according to a regulatory filing.
The private equity investor will sell 168 million convertible preference shares of the portfolio company to its founder and chairman Yang Peng, for a total consideration of HK$592.6 million.
KKR invested $100 million in the dealership operator in 2010.
Therefore, KKR’s holding in the car dealership will drop from 27.1 per cent to only 7 per cent post the completion of the share conversion. The target completion date for the exit is slated on August 5.
Meanwhile, real estate developer Greenland Holding Group, the major shareholder at Greenland Rundong Auto, has completed the sale of approximately 284 million shares to Peng and his affiliates in a HK$2 billion deal on June 27, the disclosure said.
The shares represented a 30 per cent interest the property firm was holding in Greenland Rundong Auto that it acquired from the KKR-backed venture last year. The acquisition value reached HK$1.55 billion.