Autohome Gets Non-Binding Offer From CEO For $31.50 Per Share

Autohome Inc (ADR) ATHM received a non-binding proposal from its CEO and Director, James Zhi Qin, Boyu Capital Advisory Co Ltd, Hillhouse TBC Holdings L.P. and Sequoia China Investment Management. The proposal envisaged a cash offer of $31.50 a share and took the company private.

Autohome said the consortium planned to fund the deal with a combination of equity and debt. The company indicated it was reviewing and evaluating the proposal.

The company expects its board to adopt different procedures, as well as protocols meant to evaluate the proposal and protect the interest of its shareholders, which were not affiliated with the proposer group.

In a press statement, Autohome said "The Company cautions its shareholders and others considering trading in its securities that the Board only recently received the non-binding proposal letter from the Consortium and no decisions have been made with respect to the Company's response to the proposal." The company pointed out, "There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law."

On Friday, the stock jumped 6.56 percent to close at $32.14.