XXF buys car service chain Xinqite for US$18.1M 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 US$18.1M 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
