TuanChe to acquire Longye for U.S. equivalent of RMB200M
TuanChe announced that it entered into a share purchase agreement with, among other parties, Longye, a company incorporated in the Cayman Islands. Pursuant to the agreement, the company has agreed to acquire the entire equity interest in Longye for a U.S.-dollar equivalent of RMB200M in the form of cash and the company's securities in aggregate. According to the agreement and subject to customary closing conditions, the company agreed to extend a bridge loan of a U.S.-dollar equivalent of RMB100M upon the execution of the agreement and other related documents, credit this bridge loan to the cash portion of the purchase price and issue 8,366,444 Class A ordinary shares of the company to the selling shareholders of Longye. The consideration shares are calculated by dividing a US-dollar equivalent of RMB100M by the average closing price of the company's shares during the thirty-day period ended on May 10. The consideration shares will be subject to contractual restrictions on transfer. Additionally, 20%, 30%, and 50% of consideration shares will have contractual restrictions lifted on January 1, 2020; January 1, 2021 and January 1, 2022, respectively. The acquisition of Longye is subject to the relevant corporate approvals, customary closing conditions, and pre-acquisition corporate restructuring. There is no assurance that any such procedures or transactions will be completed in a timely manner, or at all. Longye has been a system developer that develops and implements social customer relationship management cloud systems for China's automotive industry since June 2013.