China's biggest car rental service, Car Inc., will start investing in two car developers and enter the market's biggest new sector, as well as using their tourism partners as well.
Car Inc. will acquire a stake of FDG Electric Vehicles for $69 million to become its largest shareholder, the Beijing-based buyer said in a statement, adding that it will purchase 9 billion shares, or a 22 percent stake, of the Hong Kong-based firm at a price of $0.007 per share. The auto renter will also acquire $764 million worth of the developer's convertible bonds.
Car Inc. can rapidly enter the manufacturing process of new energy vehicles through the investment, which will be conducive to building an entire travel service ecosystem, Cui Dongshu, secretary-general of the China Passenger Car Association, told Yicai Global, adding that the firm may cooperate with travel companies to quickly obtain large sales deals.
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