Ctrip, Ocean Link form consortium in car rental firm eHi's going-private bid
With a 14% equity interest and 19.6% voting power in eHi, Ctrip is again teaming up with Ocean Link, this time for the privatization of the car rental firm.
Ocean Link, a private equity firm dedicated to investing in travel-related industries in China which has Ctrip chairman James Liang as a board director, announced on April 6, 2018 that it had formed a consortium with Ctrip - an existing shareholder of eHi, in connection with its non-binding proposal of a "going-private" transaction with respect to eHi Car Services Limited.
Ocean Link submitted the Proposal to the board of directors of eHi on April 2, 2018, pursuant to which Ocean Link proposed to acquire all of the outstanding common shares of the Company (including Common Shares represented by ADSs) for US$14.50 in cash per ADS or US$7.25 in cash per Common Share in a "going-private" transaction.
According to an audited annual report submitted to SEC on April 14, 2017 by Ctrip, the OTA giant held an aggregate equity interest of 14% of eHi's total outstanding share and 19.6% of eHi’s voting power as of December 31, 2016 with the aggregated investment cost of USD 107 million (approximately RMB 0.7 billion).
Read original article