S&C Represents Financial Advisers in MBK Partners’ Acquisition of China’s CAR Inc.November 24, 2020
MBK Partners, one of the largest North Asian private equity firms and acting through one of its subsidiaries, announced its intention to acquire all the outstanding shares that it does not already own in CAR Inc. for a price that values the target at HK $8.5 billion (US$1.1 billion). CAR Inc. is China's largest car rental platform. The deal, announced November 13, is MBK's first Hong Kong public takeover transaction.
A consent solicitation process will be undertaken with the target's bondholders to secure their consent to the change of terms of the target's bonds and debt facilities.
The announcement follows MBK's recent signing of an agreement to acquire a 20.86 percent stake in CAR from Ucar Inc. The acquisition is expected to close before pre-conditions to the general offer are satisfied, including obtaining PRC antitrust approval. MBK's existing portfolio of investments includes eHi Car Services, the second largest car rental company in China.
S&C is acting as legal adviser to the joint financial advisers, Goldman Sachs (Asia) L.L.C. and J.P. Morgan Securities Asia Pacific Limited. The Hong-Kong based S&C team is led by Kay Ian Ng, and includes associate Maximilian Chapman.