Changan Automobile (SZSE: 000625) plans to sell a 10% stake in its premium EV subsidiary Avatr through a public listing, with a minimum asking price of 3.18 billion yuan ($474 million).
The stake was put up for sale on November 12, with the disclosure period running through December 10, according to the Shanghai United Assets and Equity Exchange. A buyer has yet to be determined.
The sale involves existing shares held by Changan, which will receive the proceeds. Avatr will not directly receive new funding from the transaction.
The minimum asking price implies a total equity valuation of about $4.74 billion for Avatr, with the final transaction price dependent on bids from qualified buyers.
For comparison, Nio Inc (NYSE: NIO), Xpeng (NYSE: XPEV) and Li Auto currently have market capitalizations of about $7.64 billion, $9.08 billion and $12.05 billion, respectively.
Changan currently holds a 40.994% stake in Avatr, while CATL (HKEX: 3750) is the second-largest shareholder with 9.1742%, according to the sale documents.
If the transaction is completed, and assuming no other ownership changes, Changan's stake will fall to 30.994%, though it will remain Avatr's largest shareholder.
The stake sale comes as Avatr pursues a Hong Kong listing. The company resubmitted its listing application on June 30 after its previous application lapsed at the end of its 6-month validity period.
The sale terms require prospective buyers and their affiliates to have no competitive relationship with Avatr or its affiliates. Buyers must also pledge that their funding sources will not affect the company's future listing process.
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