Kaixin Auto Holdings (NASDAQ: KXIN) today announced that it received compliance from NASDAQ Stock to acquire 100% share capital of Haitaoche Limited. Both the companies entered into a share purchase agreement on Dec 31, 2020.
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The inked deal is subject to several conditions, such as shareholder approval of the amendment to the Company’s article of associations. KXIN expects the Acquisition to be completed in May 2021. KXIN share price saw an increase after the news.
Kaixin Auto Holdings (KXIN) stock price surged 15.61% to trade at $2.74 in premarket at last check and have soared a staggering 337.6% amidst the past 3 months.
About Kaixin Auto Holdings
Kaixin Auto Holdings is one of the leading car dealership networks in the lucrative used car market in China. Supported by the rapid expansion of China’s evergreen car market creating a savvy business model with emphasis on online sales as well, Kaixin has transitioned from a financing platform into a national dealer network providing value added services as well.
KXIN has also announced recently, that Haitaoche Limited has completed a cooperation agreement with Jingdong Century Trade Limited, a giant in china’s online auto market platform.
In accordance to the terms in the Cooperation Agreement, Haitaoche plans to access china’s rapidly expandinge-commerce auto sales market further diversifying their revenue by providing value added services.
Both the companies aim to sell a total of approximately $308 million worth of Haitaoche used vehicles on the Jingdong platform, and are expected the grow volumes of sales at 50% per year for the next three years.
Conclusion
Kaixin Auto offered a better-than-expected outlook for the current quarter, and are anticipated to produce a decent profit as their stock price surged 15.6% after announcing toacquire 100% share capital of Haitaoche Limited, a renowned company in the field of import car sales. Furthermore, co-operation agreement between Haitaoche Limited and Jingdong century trade has further peaked investor interest.
