Singapore Sovereign Wealth Fund GIC Increase Its Stake In Chinese Used Car Platform Uxin

October 15, 2020 4:04 pm

Beijing (PingWest)- Singapore sovereign wealth fund GIC has increased its stake in Chinese used-car platform Uxin from 5.01% to 11.4%, according to a filing with the U.S Securities and Exchange Commission (SEC) on Tuesday.

In October 2019, GIC initially made an investment in Uxin for 5.01% stake. The Tuesday filing indicated that GIC has increased its stake to a total of 123.76 million shares, out of which it has 101.3 million shares with sole voting power and 22.46 million shares with shared voting power.

On October 6, Uxin said it had agreed with two undisclosed international investors for private placements of 84.69 million shares for USD25 million, which allow other existing shareholders Warburg Pincus, TPG, and Chinese online marketplace to adjust the pricing on their convertible notes.

With a large network of over 1,300 service centers across over 250 cities in China, Uxin allows consumers to purchase used cars via an online platform with value-added service including car inspection, car insurance, warranty, logistics and others. Uxin has been publicly traded on Nasdaq since June 2018, when it raised USD400 million in its IPO.

However, Uxin is struggling with operational difficulties and slowing car sales in Chinese auto market mainly due to the Covid-19 outbreak.

In March, Uxin sold its auction business to China’s largest classified marketplace for USD105 million, the disposal can help Uxin to help shore up its balance sheet.

Under the terms of the purchase agreement, the deal covers the assets and liabilities related to Uxin’s B2B online user car platform.