US-based AutoTrader Group, the largest operator of auto websites in the US, has invested $58.5m for 9m ordinary shares, a 21.8% stake, in Bitauto.com, a multi-platform auto-related Internet media company. The strategic investment was conducted on the non-open market.
The senior management of Bitauto.com has also purchased 2.4% shares of Bitauto.com from pre-IPO shareholders for $6.5m. The deal has been funded through a four-year loan supplied by AutoTrader. The transaction is set to close at the end of November, customary to usual closing conditions.
Chief executive of AutoTrader Chip Perry said: “AutoTrader Group’s investment in Bitauto aligns our group of companies with China’s leading online automotive site,this investment strengthens our portfolio of companies and establishes the foundation for AutoTrader’s future growth and learning opportunities in emerging markets.