China Commerical Credit (CCCR), a company that provides leasing for used luxury vehicles, has entered into a letter of non-binding intent with the parent company of Beijing Lexiang Technology Co., the companies announced in a press release.
Beijing Lexiang Technology — also known as Guolon — is a provider of auto finance services in China. By running “Che Dai Dai,” an internet-based financial information services platform, the company serves about 140 million drivers in China. Guolon also operates an automotive financial information service that has more than 18,000 registered users and posted a transaction amount of more than $227 million in the past year.
China Commercial Credit will obtain 100% of the outstanding shares of Lemon Green Inc., the parent company of Guolon. In exchange, China Commercial Credit will offer a number of shares of the company’s common stock based on the total enterprise value of Lemon Green.
“[China Commercial Credit] is focused on finance and mobility,” Long Yi, chief financial officer and director of China Commercial Credit, said in a press release. “The acquisition is a key step by CCCR to explore the financial area. We expect the takeover to generate steady cash flow and create more shareholder value.”
Completion of the transaction is subject to a number of factors, such as an investigation, approval of the company’s board of directors and shareholders, and approval by NASDAQ.
