Blog Exposure – Ocean Link Announces Update on Its Offer for eHI Car Services

Stock Monitor: H&E Equipment Services Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 02, 2018 / Active-Investors.com has just released a free research report on eHi Car Services Ltd (NYSE: EHIC) (“eHi”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=EHIC as the Company’s latest news hit the wire. On April 30, 2018, Ocean Link Partners Ltd (“Ocean Link”), which is a private equity firm dedicated to investing in travel-related industries in China, provided an update on the progress of its non-binding proposal to acquire all of the outstanding common shares of eHi. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for H&E Equipment Services, Inc. (NASDAQ: HEES), which also belongs to the Services sector as the Company eHi Car Services. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=HEES

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, eHi Car Services most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=EHIC

The Proposal

On April 02, 2018, Ocean Link submitted a non-binding proposal to purchase all of the outstanding common shares of eHi in a going-private transaction. The proposed purchase price for each American depositary share of the Company (ADS, each representing two shares) was US$14.5 or US$7.25, per Class A or Class B share, in cash.

On April 04, 2018, a Purchase and Voting Agreement was made between Ocean Link and CDH Venture Partners II, L.P. (“CDH”) to transfer to Ocean Link, the control over 538,764 Class A Common Shares, and 8,599,211 Class B Common Shares of eHi. The Company announced that this transaction was already closed.

On April 06, 2018, a Consortium Agreement was made between Ocean Link and Ctrip Investment Holding Ltd (“Ctrip”). Ctrip held 4,300,000 Class A Common Shares and 15,168,193 Class B Common Shares of eHi as of March 31, 2017. Collectively, the Ocean Link Consortium holds 4,838,764 Class A Common Shares and 23,767,404 Class B Common Shares. The Ocean Link Consortium stated that they are confident that sufficient voting power has been gathered to veto any opposing take-private transaction that is not in the best interest of eHi’s shareholders.

The Other Offer

On April 06, 2018, eHi announced that it had entered into a definitive Agreement and Plan of Merger with Teamsport Parent Ltd.

Pursuant to the Merger Agreement, Teamsport made an offer to acquire eHi for a total cash consideration equal to US$6.75 per common share of the Company, or US$13.50 in cash per ADS. The merger consideration represents an increase of approximately 1.1% from the original US$6.675 per share and US$13.35 per ADS offer price in the non-binding ‘going private’ proposal dated January 01, 2018, from an affiliate of MBK Partners Fund IV, L.P. and Mr. Ray Ruiping Zhang, who is the Chairman of the Board and Chief Executive Officer (CEO) of the Company. The consideration to be paid to holders of Shares and ADSs implies an equity value for the Company of approximately US$937.5 million.

Way Forward

Ocean Link stated that their price is US$1 per ADS higher than the price offered in the Agreement and Plan of Merger announced by eHi on April 06, 2018.

The Ocean Link Consortium presented a petition and an injunction to the Cayman Islands Grand Court. The main purposes of this Court filing was to restrain the reliance, and declare void, resolutions passed at a meeting of the Board of eHi dated April 06, 2018, in relation to the bid by the Management Consortium, and to direct the Special Committee to diligently consider the offer by the Ocean Link Consortium.

Stock Performance Snapshot

May 01, 2018 – At Tuesday’s closing bell, eHi Car Services’ stock was slightly up 0.69%, ending the trading session at $13.16.

Volume traded for the day: 168.45 thousand shares.

Stock performance in the last month – up 6.90%; previous three-month period – up 10.68%; past twelve-month period – up 29.40%; and year-to-date – up 13.74%

After yesterday’s close, eHi Car Services’ market cap was at $925.41 million.

Price to Earnings (P/E) ratio was at 59.82.

The stock is part of the Services sector, categorized under the Rental & Leasing Services industry. This sector was up 0.2% at the end of the session.

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