Tencent, PAG join $300m investment in China's Bitauto

Other investors in the deal included Chinese search engine Baidu and online sales company JD.com. Tencent, Baidu and JD.com each committed to purchasing $50 million in newly issued Bitauto shares, according to a statement. PAG, meanwhile, will acquire up to $150 million in convertible bonds.

Upon the closing of the transactions, Tencent, Baidu, JD.com and the holders of the convertible bonds will control 7.1%, 3.2%, 23.5% and 8.2% of Bitauto's outstanding shares, respectively. Proceeds from the investments are expected to be used for general corporate purposes as the company advances its e-commerce, social media and big data growth plans. "Through our new partnership with Baidu, we expect to leverage its leadership in mobile and desktop online search, big data and transaction services platforms for additional strategic advantages as we continue to create the industry leading new and used car purchasing experience for customers in China," said William Li, CEO and chairman of Bitauto.

Founded in 2000, Bitauto offers advertising services to automakers through two websites and provides consumers with up-to-date car pricing, promotional information, specifications, reviews and customer feedback. Revenue increased 62% during 2015 to RMB4 billion ($608.8 million); however, the company reported a loss of RMB424.3 million for the year compared to an RMB485.2 million profit in 2014.

Tencent and JD.com invested $1.5 billion in the company last year to take 3.3% and 25% stakes, respectively. Separately, JD.com and Tencent have together invested a further $250 million in a Series A round of funding for YiXin Capital, a Bitauto subsidiary that finances automotive-related e-commerce businesses.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Consumer
• Technology
• PIPEs
• China
• automobiles
• TMT