58.com Inc., one of China's largest online market place for classifieds, has announced that it, together with Warburg Pincus, TPG and certain other investors, entered into definitive agreements with Uxin Limited, a leading used car e-commerce platform in China, pursuant to which 58.com will purchase convertible notes issued by Uxin for a principal amount of US$100 million (out of a total aggregate amount of US$230 million from all co-investors) through a private placement. The convertible notes will bear interest at a rate of 3.75% per annum from the issuance date and mature in five years thereafter. Each note will be convertible into Class A ordinary shares of Uxin at a conversion price of US$1.03 per share (equal to US$3.09 per ADS), subject to certain adjustments, at the holder's option after a 180-day period.
The transaction is subject to customary closing conditions and is expected to close by June 2019. Upon closing, 58.com will have the right to nominate one director to Uxin's board of directors and will strategically cooperate with Uxin to optimize and strengthen traffic and inventory acquisition, used-car inspections, big data analysis and SaaS development.
Michael Yao, Chairman and Chief Executive Officer of 58.com, commented "We see enormous growth potential in China's used car market and believe that the volume of used-car transactions will overtake that of new cars in the years ahead. The user experience for selling and buying used cars locally or across regions in China is evolving and improving through continued innovation and investment. 58 Used Car, a leading online used car platform for consumers and businesses that is part of our multi-content category classifieds platform, will benefit from Uxin's tremendous offline transaction-related expertise. Uxin's cross-regional transaction business has been generating strong growth momentum over the last several quarters. We believe this investment will create strong synergies for both companies and help optimize and strengthen traffic and inventory acquisition, used-car inspections, big data analysis and SaaS development. By jointly integrating our online and offline services, we will be ideally positioned to significantly enhance the user experience for purchasing used cars and drive greater efficiency in this growing market."
SOURCE 58.com Inc