Leading international law firm Clifford Chance has advised private equity firm MBK Partners on the US$1.1 billion privatisation of Car Inc. (China Auto Rental), a leading car rental company in China, by way of a voluntary general offer and subsequent compulsory acquisition.
The firm also advised MBK Partners on the debt financing aspects in relation to the take-private of Car Inc. which included loan facilities, bond financings, convertible bond issuance, and consent solicitation processes to facilitate the privatisation.
On 5 July 2021, MBK Partners had completed the compulsory acquisition procedure under Cayman law and acquired 100% ownership in Car Inc. Car Inc. was delisted from the Hong Kong Stock Exchange on 8 July 2021.
The transaction involved a team of Clifford Chance experts in private equity, Hong Kong public M&A, financial markets and debt capital markets, led by Hong Kong partners Anthony Wang (Finance), Edith Leung (Finance), Bryan Koo (PE M&A) and David Tsai (DCM), as well as consultant Tommy Tam (HK Public M&A), senior associate Nathan Wong (DCM), and associates George Lau (PE M&A), Shawn Tan (Finance), and Varian Koh (Finance).
Speaking on the transaction Bryan said, “The successful transaction strengthens Car Inc’s position in China’s rapidly growing auto rental market because of low penetration and increasing mobility needs. We are pleased to be able to draw on the strength of our team across multiple practices to bring this landmark transaction to a successful close.”
