eHi Car Services Considers Going Private

eHi Car announced that its board of directors has formed a special committee to consider a non-binding going-private proposal from Goliath Advisors Ltd.

Selina Cheng
    Dec 26, 2017 11:11 AM  PT
eHi Car Services Considers Going Private
author: Selina Cheng   

eHi Car Services Ltd., a car rental and car services company in China, today announced that its board of directors has formed a special committee to consider a non-binding going-private proposal from Goliath Advisors Ltd., a China-based investment fund. 

According to a preliminary non-binding letter dated Nov. 26, Goliath has proposed to acquire all outstanding common shares of eHi Car for $13.35 in cash per American depositary share (each representing two Class A common shares).  Although no decision has been made regarding the company's response, eHi Car has retained Duff & Phelps LLC as its independent financial advisor and Fenwick & West LLP as its legal counsel to evaluate the proposal.

Started in 2006, eHi Car began by providing car services to premium corporate clients, expanding into the car rental business two years later. The company, which issued its ADSs on the NYSE in 2014 at $12 per share, now trades below its offering price at just above $10 per share.

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