Carsome’s co-founder and group CEO Eric Cheng: “This is the first step toward consolidation to form the largest digital automotive group in terms of revenue, user base, largest live listing, and the best end-to-end fulfilment capability in the region.”
KUALA LUMPUR (July 13): Carsome Group announced today that it is acquiring 19.9% of Australia-listed iCar Asia Ltd from Catcha Group.
It added that Carsome and Catcha Group have made a joint proposal to the independent directors of iCar Asia to acquire the balance of 80.1% of iCar from its shareholders.
The total transaction is estimated to be worth more than US$200 million, said Carsome in a statement.
Shares in
iCar Asia Ltd(ASX: ICQ) are soaring today following news the company’s received an acquisition proposal. Right now, the iCar Asia share price is 41.67% higher than its previous close, with shares in the company trading for 42.5 cents apiece.
Earlier this morning, iCar Asia shares reached 46 cents – a new 52-week high and their highest point since 2016.
iCar Asia develops and operates an internet-based vehicle portal allowing people in Malaysia, Indonesia, and Thailand to buy, sell, and learn about new and used vehicles.
Let’s take a look at the news boosting the iCar Asia share price today.
Acquisition proposal
Carsome, Catcha Group partner to acquire iCar Asia in $200m deal
July 13, 2021
Southeast Asian used car trading platform Carsome announced that it will be acquiring a 19.9% stake in ASX-listed iCar Asia Ltd from Catcha Group, according to a company statement.
Carsome and Catcha group have also made a joint proposal to acquire the rest of the 80.1% of iCar from its shareholders in a total transaction value of more than $200 million.
The deal will create the largest digital automotive marketplace in the region, the statement added.
According to the announcement, Catcha Group will become a shareholder of the Carsome Group in exchange for the sale of its shares in iCar Asia to Carsome.
Yoolim Lee, Bloomberg News
(Bloomberg) Southeast Asian used car marketplace Carsome Group has become Malaysiaâs first technology unicorn as part of a share-swap deal that will see the startup take a stake in iCar Asia Ltd.
Carsome agreed to acquire 19.9% of Australia-listed automotive portal iCar from Catcha Group, the largest shareholder of ICar with a 30% stake. In return, Catcha will become a shareholder of six-year-old Carsome, boosting the startupâs valuation to more than $1 billion. Following the share swap, Carsome will offer to buy the remaining 80.1% in iCar from existing shareholders, a transaction valued at more than $200 million, according to a statement from the company on Tuesday.