Tiger Global Management, the hedge fund headed by Chase Coleman, boosted its stake in Ehi Car Services, a car holding company in China.
Based on its latest 13D filing, the hedge fund current owns 16,669,726 shares or 30.5% of the outstanding Class A shares of Ehi Car Services. Tiger Global Management previously owned 9,403,060 shares or 21.5% of the Chinese car holding company.
In its previous filing, Tiger Global Management said it would review their investment in Ehi Car Services on a continuing basis depending on different factors including its financial position, strategic directions, and action taken by its board and management.
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The Tiger Global entities would also monitor other investment opportunities available to them, the price levels of the Class A shares of Ehi Cars Services, conditions of the securities market, the general economy and industry.
Tiger Global investment details
Tiger Global Management’s affiliate fund, Global Mauritius entered a Purchase Agreement with Ehi Car Services on May 22, 2015. At the time, the fund acquired 7,625,283 Class A shares of Chinese car holding company. The acquisition price was $6 per share or total of $45,751,698.
Under the Purchase Agreement, Global Mauritius had the right to acquire additional 7,266,66 Class A shares for $6 a piece or total of $43,599,996, subject to shareholder approval within 60 after May 22. The fund completed the additional purchase on June 30.
Following the completion of the additional purchase, Mauritius Global entered into a Registration Rights Agreement with Ehi Car Services in the form contemplated by the Purchase Agreement. The agreement provides the fund with certain registration rights related to the Class A and ADS of the Chinese car holding company.
The Registration Rights Agreement required Ehi car Services to file a resale registration statement or statements if necessary, with respect to the Class A and ADS acquired by the fund. The agreement will expire on November 18, 2017.
Registration Rights Agreement was entered into by Ehi Car Services Limited, Tiger Global Mauritius Fund, SRS Partners I Mauritius Limited and SRS Partners II Mauritius Limited.
Ehi Services financial and stock performance
The stock price of Ehi Car Services increased 1.66% to $14.70 per share on Wednesday. The Chinese car holding company gained more than 80% of stock value year-to-date.
During the first quarter of 2015, Ehi Car Services reported that its net revenues increased 60.7% to RMB295.5 million or $47.7 million. Its non-GAAP adjusted EBITDA rose 114.1% to RMB115.7 million or $18.7 million.
On June 2, Ehi car Services entered into a definitive agreement to transfer 100% equity interest in its wholly owned subsidiary, Elite Plus Developments Limited to Eagle Legend Global Limited. The gross proceeds from the transaction were $160.9 million.