Benzinga | Oct 27, 2020 06:08AM EDT

Autohome Inc. Announces Investment In TTP Car Inc. Through Subscription Of Preferred Shares For $168M

BEIJING, Oct. 27, 2020 /PRNewswire/ -- Autohome Inc. (NYSE:ATHM) ("Autohome" or the "Company"), the leading online destination for automobile consumers in China, today announced that it has entered into a definitive agreement with TTP Car Inc. ("TTP"), a leading auction platform for used cars in China. Pursuant to the agreement, Autohome will make an investment in TTP through subscription of preferred shares in the capital of TTP for an aggregate purchase price of US$168 million, which is subject to customary closing conditions. In addition, Autohome has the right to purchase up to US$200 million in total principal amount of one or more convertible bonds to be issued by TTP upon Autohome's request.

Mr. Min Lu, Chairman of the Board of Directors and Chief Executive Officer of Autohome, stated, "Over the past two years, we have witnessed the robust development of China's used car market. As a leading used car auction platform in China, TTP is well positioned to add significant synergetic value to Autohome's used car business. By working closely with TTP, Autohome will deeply integrate itself into upstream supply of used cars, leverage the transaction business to further develop its auto finance operations, and build a comprehensive C2B2C ecosystem for used car transactions, aiming to become China's largest used car platform."

Mr. Jun Zou, Chief Financial Officer of Autohome, added, "Our previous investment in TTP in 2018 has proven highly successful. Autohome in combination with TTP has become the largest online used car platform in China by total number of leads generated in 2019, according to iResearch. Integrating Autohome's online capabilities with TTP's offline presence, we expect to deliver enhanced value proposition by providing the best solutions for our users and customers. We look forward to generating stronger synergies and boosting growth through our add-on investment in TTP."