On September 13, Yi Xin Group (02858) issued a notice stating that the company’s shares have been suspended for a short period of time, pending announcement in accordance with the Hong Kong Code on Takeovers and Mergers and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Editor’s note: This article is from blue whale Finance , Author: Internet banking gold Qi, authorized to reprint.
On September 13, Yixin Group (02858) issued an announcement revealing that the inside information of the short-term suspension today said that the board of directors received the notice of the controlling shareholder of the company, and the board of directors of the company received Tencent Holdings on September 12. And the letter of recommendation from Dark Horse Capital regarding the proposed transaction.
According to the official website of Easy Car, Easy Car (NYSE: BITA) announced that the board of directors has received a preliminary non-binding purchase letter of intent to acquire an amount of US$16 per share (or the equivalent amount of American Depositary Shares, ADS). Except for the buyer group and the concerted action holders, all ordinary shares issued by the car are released. Easy car is to be privatized.
Yi Xin announced that after the transaction is completed, the legal control of the car will change, and the buyer group will obtain the control of Yi Xin. Pursuant to Note 8 of Note 6.2.1 of the Takeovers Code, the Purchaser Group will make a possible offer to shareholders and other securities holders of Yixin listed companies for all the issued securities of Yixin and Yixin listed companies after the completion of the proposed transaction.
The announcement stated that Yixin’s board of directors was informed by Yiqi that the buyer’s group had reached a number of support agreements with certain Yiqi shareholders, including JD Global, regarding the proposed transaction. JD Global has agreed to use all the shares owned by the company and the American depositary. The Shares voted in favour of the proposed transaction and will roll up to 15% of all issued Rover shares (excluding any treasury shares) to the proposed transaction. As a result of Yixin’s board of directors, JD Global owns approximately 25.1% of Yiqi shares.
In addition, the buyer group and JD Financial may make an irrevocable commitment to the offer. As of the date of this announcement, JD Financial owns 10.74% of all issued Yixin shares. According to public information, JD Global should be JD. JD Financial should be JD Finance.
Public information shows that Easy Car Network was established in 2000 and listed on the New York Stock Exchange in 2010. The opening price was $15.07 on September 13 and the market value was about $1 billion. On September 30, 2014, the price of Easy Car had reached 98.28 US dollars. In 2018, Li Bin, the founder, chairman and CEO of the original Yi car, announced his resignation as CEO and continued to serve as chairman of Yiqi. Yi Xin, CEO of the former Yi car, took over the post.
The Yixin Group had a short suspension today, the announcement stated that it is subject to the announcement of the Hong Kong Company Acquisition and Merger Code and the listing rules of the Hong Kong Stock Exchange Limited. At that time, Yixin Group has not announced the reason for the suspension, saying that it constitutes inside information of the company. Yi Xin announced in the evening that the sale has resumed.
As of the suspension date, Yixin closed at HK$1.71 and the total market capitalization was HK$19.894 billion. Yi Xin hit an all-time low of 1.48 Hong Kong dollars last month.
Yi Xin Group is an auto finance company of Tencent. It was originally owned by Auto Finance of Auto.com. It was independently operated in 2014 and listed on the Hong Kong Stock Exchange in November 2017. The issue price is HK$7.7, the first day of listing. The stock briefly hit HK$10.18.
Yi Xin’s 2019 interim results showed that the total revenue during the reporting period was 3.162 billion yuan, up 23% year-on-year; the core business included loan-assisted and self-operated businesses, of which the loan-receiving business income was 839 million yuan, up 655% year-on-year.
According to the “China Business News” previously reported, there are dozens of “borrowers” who said that the Yixin car loan under the Yixin Group has “the use of mortgage loans to sell car financing leases.” The borrower complained that they originally found Yi Xin borrowing a car loan, but was induced to sign a financial leasing contract. In the end, it was equivalent to selling the car to Yi Xin at an estimated price of 30%, and then returning it to rent.
Tianshichao shows that Yixin Group’s Shanghai Yixin Financial Leasing Co., Ltd. involves thousands of contract disputes, including financial leasing contract disputes and vehicle rental contract disputes. Shanghai Yixin Financial Leasing is mostly an appellant.
In June, Yixin Group issued an announcement to enter into a financial leasing contract with Noah to lease assets or car for the lessee.. According to the announcement, on March 25, 2019, the lessee Shanghai Yixin entered into a March financial lease contract with the lessor Noah. The lessee agreed to sell certain leased assets to the lessor, and the lessor agreed to return the leased assets within a certain period of time. Leased to the lessee; on June 11, the lessee entered into the second March follow-up contract with the lessor. The lessee agreed to sell the leased assets to the lessor for a total consideration of RMB 113 million.
Yi Xin Group’s interim results show that as of June 30, Yi Xin’s net finance lease receivables amounted to RMB 34.88 billion, and the expected credit loss provision was 580 million. The overdue rate of the platform over 180 days was 0.77%, 90 The overdue rate for the above day (including 180 days or more) was 1.29%, both of which were higher than the same period last year.