China’s Autohome proposes to buy Malaysia’s iCar Asia

Malaysian car listing network iCar Asia announced it has received a non-binding proposal that could see the Chinese online car marketplace Autohome acquiring 100% of iCar’s shares for A$0.50 (US$0.35) apiece or around A$215.7 million (US$151.6 million), based on the number of outstanding shares.

Hamish Stone, CEO of iCar Asia / Photo credit: iCar Asia

The company, which is listed on the Australian stock exchange, said the deal is still subject to a number of conditions, including further negotiations and the signing of certain approvals. It added that there’s no certainty that the proposed deal will materialize and its shareholders do not need to take any immediate action.

In addition to the acquisition proposal, iCar Asia also said it made the first drawdown – a gradual accessing of credit funds – of A$1 million (US$704,000) on the A$5 million (US$3.5 million) loan facility agreement it had made with international internet major Catcha Group. It plans to use the funds to bankroll its growth strategies.

Catcha has waived all rights to receive or accrue any interest in respect of this facility, it said in a statement. It further added that as per their agreement in November 2017 , iCar has issued 7,555,553 options to Catcha with an exercise price of A$0.20 (US$0.14) upon drawing down on the facility.

In a separate statement, iCar Asia announced it has logged a total net operating cash outflow of A$1.05 million (US$740,000) for Q3 2020, a 32% increase year on year. The company also claimed that its Malaysia and Thailand operations were EBITDA (earnings before interest, taxes, depreciation, and amortization) positive for the third quarter, closing the report period with A$0.9 million (US$634,000) in cash and cash equivalents.

Founded in 2012, iCar Asia owns and operates a network of automotive portals in the region that reaches 12 million car buyers and sellers every month. It operates multiple separate websites in Malaysia, Indonesia, and Thailand, including the Rocket Internet-backed Carmudi, which it acquired last year for US$3 million.

Currency converted from Australian dollar to US dollar: US$1 = A$1.42.