BEIJING, May 28, 2019 /PRNewswire/ -- 58.com Inc. (WUBA) ("58.com" or the "Company"), China's largest online market place for classifieds, today announced that it, together with Warburg Pincus, TPG and certain other investors, entered into definitive agreements with Uxin Limited ("Uxin") (UXIN), a leading used car e-commerce platform in China, pursuant to which 58.com will purchase convertible notes issued by Uxin for a principal amount of US$100 million (out of a total aggregate amount of US$230 million from all co-investors) through a private placement. The convertible notes will bear interest at a rate of 3.75% per annum from the issuance date and mature in five years thereafter. Each note will be convertible into Class A ordinary shares of Uxin at a conversion price of US$1.03 per share (equal to US$3.09 per ADS), subject to certain adjustments, at the holder's option after a 180-day period.
The transaction is subject to customary closing conditions and is expected to close by June 2019. Upon closing, 58.com will have the right to nominate one director to Uxin's board of directors and will strategically cooperate with Uxin to optimize and strengthen traffic and inventory acquisition, used-car inspections, big data analysis and SaaS development.
Mr. Michael Yao, Chairman and Chief Executive Officer of 58.com, commented "We see enormous growth potential in China's used car market and believe that the volume of used-car transactions will overtake that of new cars in the years ahead. The user experience for selling and buying used cars locally or across regions in China is evolving and improving through continued innovation and investment. 58 Used Car, a leading online used car platform for consumers and businesses that is part of our multi-content category classifieds platform, will benefit from Uxin's tremendous offline transaction-related expertise. Uxin's cross-regional transaction business has been generating strong growth momentum over the last several quarters. We believe this investment will create strong synergies for both companies and help optimize and strengthen traffic and inventory acquisition, used-car inspections, big data analysis and SaaS development. By jointly integrating our online and offline services, we will be ideally positioned to significantly enhance the user experience for purchasing used cars and drive greater efficiency in this growing market."
About 58.com Inc.
58.com Inc. (WUBA) operates China's largest online market place for classifieds, as measured by monthly unique visitors on both its www.58.com website and mobile applications. The Company's online marketplace enables local business users and consumer users to connect, share information and conduct business. 58.com's broad, in-depth and high quality local information, combined with its easy-to-use website and mobile applications, has made it a trusted marketplace for consumers. 58.com's strong brand recognition, large and growing user base, merchant network and massive database of local information create a powerful network effect. For more information on 58.com, please visit http://www.58.com.
Safe Harbor Statements
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. 58.com may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about 58.com's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: 58.com's goals and strategies; its future business development, financial condition and results of operations; its ability to retain and grow its user base and network of local merchants for its online marketplace; the growth of, and trends in, the markets for its services in China; the demand for and market acceptance of its brand and services; competition in its industry in China; its ability to maintain the network infrastructure necessary to operate its website and mobile applications; relevant government policies and regulations relating to the corporate structure, business and industry; and its ability to protect its users' information and adequately address privacy concerns. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and 58.com does not undertake any obligation to update such information, except as required under applicable law.
For more information, please contact:
Mr. Christian Arnell
In the U.S.
Ms. Linda Bergkamp