Autohome, a Hong Kong-listed company, announced that Ping An Insurance will no longer be its controlling shareholder after selling a 41.91% stake for $1.8bn.
Yun Chen Capital Cayman, a Ping An unit, agreed to sell 200.9 mn shares of Autohome to Cartech Holding Co., a subsidiary of Haier Group Corp.
The transaction is subject to regulatory approvals. Once completed, Yun Chen will retain 23.9 mn ordinary shares and lose its controlling stake.
Ping An originally acquired a 47.4% stake in Autohome for $1.6bn in 2016 from Australian telecom company Telstra. In 2021, Reuters reported that Ping An had been exploring options to sell its stake, engaging with strategic and private equity investors.
Jefferies analysts noted that Autohome faces growing competition from direct rivals and automakers increasingly focused on self-distribution. They also pointed out that Autohome contributes little to Ping An’s overall financials, and the sale allows the company to allocate resources to higher-return ventures.
Autohome also announced a leadership change, with CEO Tao Wu resigning. Song Yang has been appointed as the new CEO and executive director.
Founded in 2005, Autohome provides automobile buyers with information, auto financing, insurance, used car transactions, and aftermarket services.
The company has a market capitalization of $3.93bn, according to LSEG data, but has lost over 66% of its value since its Hong Kong Stock Exchange debut in March 2021.
For fiscal 2024, Autohome reported a 13% drop in net income attributable to shareholders and a 2% decline in revenue. The company stated that the share transfer is not expected to have a material negative impact on its financial position or operations.
