CAR Inc., a major car rental platform, is planning to buy into electric vehicle manufacturer FDG Elec Vehicles in a HK$1.14 billion (US$150 million) deal, with the aim of entering the automaking business, Yicai.com reported.
CAR Inc. said in an announcement it plans to subscribe for 9 billion shares of FDG Elec Vehicles at a price of HK$0.06 per share for a total of HK$540 million.
Meanwhile, CAR Inc. has also subscribed for a total HK$600 million of convertible bonds.
After that, CAR Inc. will hold 22% of the shares of FDG Elec Vehicles and become its largest shareholder. If the automaker’s debt-to-equity swap is completed, the proportion of shares held by CAR Inc. will expand to 37%.
FDG Elec Vehicles covers the entire industrial chain of electric vehicles from lithium batteries to complete vehicle R&D, production, manufacturing and sales.
The company has more than 700 acres of a fully functional production base in Hangzhou city, Zhejiang province.