iCar Asia Limited has received a non-binding proposal from Autohome Inc to acquire 100 percent of its shares for A$0.50 cash per share by way of a scheme of arrangement.
Autohome is an online platform for automobile consumers in China, listed on the NYSE with market capitalisation of US$11.5 billion.
The Proposal is subject to a number of conditions including negotiation and signing of transaction documentation, FIRB approval and iCar shareholder and Court approval.
iCar has retained Goldman Sachs as financial adviser and Herbert Smith Freehills as legal adviser to assist it in responding to the Proposal.
Additionally, iCar has reached another high amid the Covid-19 environment. Its total net operating cash outflow for Q3 was A$1.05 million, improving by 32 percent compared to Q3 2019.
Cash receipts have continued to recover during Q3 increasing by 14 percent versus Q2 as all three countries the company is in has started to recover.
Unaudited revenue for Q3 2020 showed a 33 percent increase quarter on quarter versus Q2 2020, as markets begin to return to normal operation.
Dealer metrics remained steady throughout Q3 2020, with Account volumes on par with the strong results achieved in Q2 2020. Audience and Leads recovered throughout Q3 2020 growing of 22 percent and 29 percent respectively versus Q2 2020.
The Company closed the quarter with A$0.9 million in cash and cash equivalents, however subsequent to the end of the quarter has drawn down the first A$1.0 million of the A$5.0 million debt facility provided by its major shareholder, Catcha Group.
“We will continue to focus on building and evolving the quality of the core proposition of iCar, and partnering with our customers to help drive their businesses recovery. With the addition of funds into the business we are confident we can partner with consumers and key customers to continue to drive this strong recovery from Covid-19,” said Managing Director and Chief Executive Officer of iCar Asia, Hamish Stone.