Ping An seeks to sell $2.1 bln stake in Autohome -sources

Autohome

12/11/2021 05:47

HONG KONG, Nov 12 (Reuters) - Financial conglomerate Ping An
Insurance Group of China  601318.SS  is seeking to offload its
44% stake in auto services portal Autohome  ATHM.K   2518.HK ,
three people familiar with the situation told Reuters.
    Ping An, which is currently the biggest shareholder of
Beijing-based Autohome via an offshore entity, has held talks
with several strategic and private equity investors for the
stake in recent months, said the people. 
    The stake would be worth around $2.15 billion based on
Authome's current valuation.
    Autohome faces growing difficulties in China where
automakers, in particular electric vehicle (EV) makers,
increasingly rely on their own distribution networks instead of
dealerships for sales, said two of the people. 
    That has affected the business of many dealers in the
world's biggest auto market and then forced them to cut budgets
for online portals like Autohome, said the people. 
    Founded in 2005, Autohome mainly serves as an information
portal for automobile buyers and an online car-trading
marketplace in China. 
    Advertisements and fees from automakers and dealers
generally account for more than 80% of its revenue as they use
its platform for services including brand and sales promotions.
    Ping An, China's largest insurer by market value, declined
to comment on "market rumours". Autohome, which is listed in
both New York and Hong Kong, did not immediately respond to a
request for comment.

 (Reporting by Julie Zhu and Kane Wu; Editing by Stephen Coates)
 ((kane.wu@thomsonreuters.com; +85228436590; Reuters Messaging:
kane.wu.thomsonreuters.com@reuters.net))