EHi Car Services Agrees To Be Taken Private For $13.50/ADS In Cash

(RTTNews) - eHi Car Services Limited (EHIC), a leading car rental and car services company in China, said that it has entered into a definitive Agreement and Plan of Merger with Teamsport Parent Limited and Teamsport Bidco Limited, a wholly owned subsidiary of Parent.

As per the Merger Agreement, Parent will acquire the Company for cash consideration equal to US$6.75 per common share of the Company for US$13.50 in cash per American depositary share of the Company, each of which represents two Class A common shares of the Company, other than Rollover Shares and ADSs representing Rollover Shares, as applicable.

The merger consideration also represents an increase of about 1.1% from the original US$6.675 per Share and US$13.35 per ADS offer price in the non-binding "going private" proposal dated January 1, 2018 from an affiliate of MBK Partners Fund IV, L.P. and Mr. Zhang. The consideration to be paid to holders of Shares and ADSs implies an equity value for the Company of about US$937.5 million.

As of the date of the Merger Agreement, the members of the Consortium beneficially own in the aggregate 15,528,160 Class A common shares, which includes 5.26 million ADSs that BPEA Teamsport Limited, an affiliate of Baring Private Equity Asia Limited, has the right to acquire pursuant to the terms of a Securities Purchase Agreement, dated as of February 23, 2018, between Tiger Global Mauritius Fund and BPEA Teamsport, and 25.84 million Class B common shares, which represent in aggregate about 29.6% of the issued and outstanding common shares of the Company and 37.5% of the outstanding voting power of the Company.

The closing of the Merger is currently expected to occur during the second or third quarter of 2018.