Hong Kong-listed China Harmony New Energy Auto Holding Ltd. has completed a spin-off of an after-sales unit, which has reached agreements to received RMB280 million (US$41 million) from a few strategic investors, according to a disclosure filing.
Automobile industry-focused investment firm Leaguer Auto and Aotuo Investment have agreed to invest in Independent Aftersales Company, an indirectly wholly-owned subsidiary of China Harmony New Energy Auto. Aftersales Management Co., a firm owned by Harmony New Energy Auto’s chief operating officer Yang Lei and the firm’s Employee Stock Ownership Plan (ESOP), is also contributing to the investment.
Leaguer Auto and Aotuo Investment will each inject RMB105 million (US$15 million), with Aftersales Management Entities contributing RMB70 million (US$10 million). Once completed, Leaguer Auto and Aotuo Investment will each hold a 12.7% stake in the company.
At the same time, Independent Aftersales Company, which operates over 100 auto repair and maintenance shops in over 40 cities in China serving the luxury car market, also announced plans to pursue an initial public offerings in the next few years.
Founded in 2015, China Harmony New Energy Auto engages in the sales and services of over ten high-end luxury automobile brands including BMW, Lexus, Land Rover and Rolls-Royce Ltd. It currently operates 46 auto 4S (stands for Sale, Spare part, Service and Survey) stores and after-sales service stores in China.
Last December, the company revealed that it had invested US$30 million in Future Mobility Corp, a Chinese electric car start-up backed by Tencent Holdings Ltd. and Foxconn Technology Group, along with the company’s management team.
