XXF buys car service chain Xinqite for HKD150M in share deal
What's the deal? Hong Kong-listed XXFDealroom has a profile for this one. Try Dealroom → (02473.HK) has acquired about 85.45% equity interest in XinqiteDealroom has a profile for this one. Try Dealroom →, an automobile service chain company, from independent third party He Chengzhen. The deal is valued at HKD150 million and is being settled through the issue of new shares.
What's the endgame? Xinqite operates in automobile services, extending XXF's reach into the auto aftermarket. Buying a majority stake gives XXF control of the chain while keeping the seller as a minority holder.
Why now? By paying with new shares rather than cash, XXF preserves capital and ties the seller's interest to the enlarged company.
The signal: The move points to continued consolidation in China's fragmented auto service market, as listed players use equity to fold in established chains.
Read more: aastocks.com
Image credit: Steve Snodgrass
