World News: 11:00 GMT Friday 12th July 2019. [Uxin Limited via Globe Newswire via SPi World News]
BEIJING, China, July 12, 2019 (GLOBE NEWSWIRE) -- Uxin Limited (“Uxin” or the “Company”) (Nasdaq: UXIN), the largest used car e-commerce platform in China, today announced that it has entered into a binding term sheet with Golden Pacer, a leading financial technology platform in China. Pursuant to the term sheet, Uxin will divest its loan facilitation related business to Golden Pacer in exchange for an aggregate of US$100 million cash and a certain number of shares of Golden Pacer. In addition, Uxin and Golden Pacer will also enter into a series of business cooperation arrangements. After the divestiture and through the business cooperation, Uxin will provide inspection and valuation services to Golden Pacer’s used car financing transactions, and Golden Pacer will provide certain loan facilitation services for Uxin’s online used car transactions, including providing a guarantee in the event of default. Uxin and Golden Pacer will work together with third-party financing partners to achieve that Uxin will no longer bear any guarantee liabilities or credit risks for used car loans facilitated after the transaction.
Mr. Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin, said, “Going online to purchase used cars is an unstoppable trend in China’s used car market, where we see tremendous growth potential in the coming years. With our ground-breaking cross-regional transaction services, we have already made buying used cars online a reality. Going forward, facilitating online used car transactions will continue to be our primary focus. By maintaining the high growth of transaction volume and continuing to optimize cost structure and operational efficiency, we are confident that we are on track to achieving profitability.”
Mr. Dai added, “After the divestiture and through the business cooperation with Golden Pacer, we will be able to focus all of our resources on online used car transactions, which embody the key nature of used car e-commerce, and continuously optimize our product and service offerings, improve professional standards, and enhance the used car purchasing experience for consumers. At the same time, consumers will continue to enjoy high-quality financing services from a dedicated financing solution provider through the divestiture and our business cooperation with Golden Pacer.”
The parties expect to enter into definitive transaction agreements and close the transaction as soon as practicable in the second half of 2019. The execution of the definitive transaction agreements and the closing of the transaction are subject to certain approvals and conditions.
Globe Newswire: 11:00 GMT Friday 12th July 2019
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