AVCJ

Warburg Pincus makes partial exit from China Auto Rental

  • Holden Mann
  • LinkedIn  
  • Google plus  
  • Save this article  

Warburg Pincus has completed a partial exit from China Auto Rental (CAR), raising HK$3.1 billion ($401 million) and reducing its stake in the company to 11%.

Amber Gem Holdings, a wholly-owned subsidiary of the PE firm, sold 168 million shares via a placement to third parties, according to a filing. They were be priced at HK$18.50 apiece.

Warburg Pincus invested $200 million in CAR in 2012 after the company cancelled its planned US IPO, buying a 23% stake. In CAR's Hong Kong IPO last year, the firm's stake was diluted to 18%. Warburg Pincus is the company's second-largest shareholder after Grand Union Management, which has a 29% interest.

CAR is China's largest car rental company, with a total fleet of 63,522 vehicles and 723 directly operated service locations in all of China's provinces. An additional 219 service locations are operated by franchisees. It recently partnered with chauffeured car service UCAR to offer its cars through UCAR's mobile app. CAR also generates revenue from selling its used vehicles.

The company posted revenue of RMB3.5 billion ($568 million) for the year ended December 2014, with net profit coming to RMB436 million. In 2013, revenue was RMB2.7 billion, with a net loss of RMB223 million.

  • LinkedIn  
  • Google plus  
  • Save this article  

More on Greater China

Latest News

world-hands-globe-climate-esg
Asian GPs slow implementation of ESG policies - survey

Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...

  • GPs