China's TuanChe Ltd. closed the acquisition of cloud software developer Longye International Ltd. for 200 million Chinese yuan in the form of cash and company securities.
TuanChe credited its previous bridge loan of the U.S. dollar equivalent of 100 million yuan to the cash portion of the buying price. To cover the securities portion of the price, the Chinese automotive marketplace issued 8,366,444 class A ordinary shares to Longye's selling shareholders, with the price calculated by dividing a U.S. dollar equivalent of 100 million yuan by the average closing price of TuanChe's ordinary shares over a 30-day period until May 10.
As of the acquisition's completion, 20% of the class A shares had fully vested. Meanwhile, the rest are still subject to contractual restrictions to transfer, which will be lifted in 2021 and 2022.
TuanChe entered into an acquisition agreement with Longye in June 2019 in a bid to help improve the automotive marketplace's operations, product offerings and sales and marketing capabilities.
As of Jan. 10, US$1 was equivalent to 6.92 Chinese yuan.