In this briefing:
On 12 June, Bitauto Holdings Ltd Adr (BITA US) announced that it has entered into a definitive agreement for a privatisation proposal from Tencent Holdings (700 HK) and Hammer Capital. As a reminder, on 13 September 2019, Bitauto announced a non-binding privatisation proposal from Tencent and Hammer Capital for $16 per ADS. The bid is currently backed by shareholders who together account for 55.3% of the voting rights.
We had previously highlighted the attractive Bitauto privatisation spread risk/reward. Overall, we think that with the definitive agreement signed, the privatisation has a high chance of success.
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