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Baidu, Tencent and pour US$150 million into Bitauto

Chinese internet giants Baidu, Tencent and have jointly entered into definitive agreements pursuant to which the three parties each agrees to invest US$50 million in Bitauto Holdings Limited, a provider of internet content and marketing services for China’s fast-growing automotive industry.

Baidu, Tencent and each agrees to purchase 2,471,577 newly issued ordinary shares of Bitauto at US$20.23 per share.

Bitauto has also signed a definitive agreement with PA Grand Opportunity Limited. Bitauto agrees to issue convertible bonds to PAG and/or its affiliates in an aggregate principal amount of up to US$150 million.

Upon the closing of both transactions, Baidu, Tencent, and holders of the CBs will hold 3.2%, 7.1%, 23.5% and 8.2%, respectively, of Bitauto’s outstanding shares.

William Li, chief executive officer and chairman of Bitauto, commented: “Through our cooperation over the past year with and Tencent, China’s leaders in world-class e-commerce, social media and big data, we have gained tremendous momentum in making Bitauto the industry leader in online automobile transactions.”

“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.”

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