MBK Partners to acquire around 21% in auto rental company CAR for $228m

CAR Inc

North Asia-focused private equity (PE) firm MBK Partners has agreed to pick up a 20.86 per cent stake in Hong Kong-listed Chinese car rental service provider CAR Inc for 1.8 billion yuan ($228 million), according to a filing with The Stock Exchange of Hong Kong on Tuesday.

CAR’s parent company UCAR has inked an agreement with MBK Partners’ subsidiary Indigo Glamour Company by which the latter will purchase 442.60 million shares from UCAR at price of HK$4 ($0.5) per share. 

Upon the completion of the latest deal, UCAR will exit CAR. The transaction is expected to close before December 10, 2020.

Reuters had reported in August that MBK is leading a consortium that is holding acquisition talks with CAR. The investors had initially planed to purchase at least 28 per cent equity stake at more than HK$3.10 ($0.4) apiece.

In July this year, CAR entered into another agreement with state-backed Jinggangshan BAIC following which the latter invested up to 1.37 billion yuan ($207 million) in CAR for 440 million shares.

With offices in Beijing, Hong Kong, Seoul, Shanghai and Tokyo, MBK operates its PE business in China, Japan, and Korea. It manages over $22 billion in assets, counting investors such as global public pensions, sovereign wealth funds, financial institutions, corporate pensions, funds of funds, and foundations. 

The 15-year-old MBK leverages its five sub-funds, including MBK Partners I, MBK Partners IV, and the Special Situations I fund, to make investments in financial services, telecom & media, consumer products, and manufacturing.

Some of its prominent portfolio companies in the Greater China region include national graduate entrance examination tutoring service firm Wendu Education Group, and the Hong Kong-based cinema operator CGI Holdings. 

MBK had also invested in Shanghai-based car rental startup eHi Car Service in April 2019. 

MBK has been looking to consolidate the dramatically growing auto rental market, as the market is forecast to surge to 150 billion yuan ($23 billion) this year, Reuters reported in August. 

CAR, one of China’s largest auto rental groups, offers services comprising short- and long-term rentals, leasing, and chauffeur car services. CAR’s early-stage investors include Warburg Pincus, Lenovo Capital, Legend Capital, and Kleiner Perkins. 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.