BEIJING, June 6, 2016 /PRNewswire/ -- Baidu,
Inc. (Nasdaq: BIDU) ("Baidu"), the leading Chinese language
internet search provider, Tencent
Holdings Limited (SEHK: 00700) ("Tencent"), a leading provider of comprehensive
internet services in China, and
JD.com, Inc. (Nasdaq: JD) ("JD.com"), the leading online
direct sales company in China, today jointly announced
that they have entered into definitive agreements pursuant to which
Baidu, Tencent and JD.com each agrees
to invest US$50 million in Bitauto
Holdings Limited (NYSE: BITA) ("BitAuto"), a leading provider of
internet content and marketing services for China's fast-growing automotive industry.
Baidu, Tencent and JD.com each
agrees to purchase 2,471,577 newly issued ordinary shares of
Bitauto at US$20.23 per share, corresponding
to US$20.23 per American depositary share ("ADS"), each
representing one ordinary share of Bitauto. The purchase price
represents the average volume weighted closing trading price
of Bitauto's ADSs for the five trading days prior to the
signing of the definitive agreements. The transaction is subject to
customary closing conditions.
Bitauto also announced that pursuant to definitive agreements
entered into by and between Bitauto and PA Grand Opportunity
Limited ("PAG"), Bitauto agrees to issue convertible bonds ("CBs")
to PAG and/or its affiliates in an aggregate principal amount of up
to US$150 million. Mr. William
Li, chief executive officer and chairman of Bitauto will
indirectly purchase a portion of the CBs through PAG under a total
return swap arrangement with PAG.
Upon the closing of both transactions, Baidu, Tencent, JD.com and holders of the CBs will hold
3.2%, 7.1%, 23.5% and 8.2%, respectively, of Bitauto's outstanding
shares on a fully diluted basis taking into effect the new issuance
and the conversion of the CBs at the initial conversion price.
Mr. Li commented, "We are delighted to announce today the
strengthening of our strategic partnership with JD.com and
Tencent, and the establishment of a
new partnership with Baidu, the leader in Chinese language online
search. We are also pleased to welcome PAG, a leading regional
private investment firm, as an important investor. My personal
participation in this transaction is a further testament to
management's strong confidence in Bitauto's future
development."
"Through our cooperation over the past year with JD.com and
Tencent, China's leaders in world-class e-commerce,
social media and big data, we have gained tremendous momentum in
making Bitauto the industry leader in online automobile
transactions. Through our new partnership with Baidu, we expect to
leverage its leadership in mobile and desktop online search, big
data and transaction services platforms for additional strategic
advantages as we continue to create the industry leading new and
used car purchasing experience for customers in China."
About Baidu
Baidu, Inc. is the leading Chinese language Internet search
provider. As a technology-based media company, Baidu aims to
provide the best and most equitable way for people to find what
they're looking for. In addition to serving individual Internet
search users, Baidu provides an effective platform for businesses
to reach potential customers. Baidu's ADSs trade on the NASDAQ
Global Select Market under the symbol "BIDU". Currently, ten ADSs
represent one Class A ordinary share.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are 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. Baidu
may also make written or oral forward-looking statements in its
periodic reports 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. Statements that are not
historical facts, including statements about Baidu's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: our growth strategies; our future
business development, including development of new products and
services; our ability to attract and retain users and customers;
competition in the Chinese and Japanese language Internet search
markets; competition for online marketing customers; changes in our
revenues and certain cost or expense items as a percentage of our
revenues; the outcome of ongoing, or any future, litigation or
arbitration, including those relating to intellectual property
rights; the expected growth of the Chinese language Internet search
market and the number of Internet and broadband users in
China; Chinese governmental
policies relating to the Internet and Internet search providers and
general economic conditions in China, Japan
and elsewhere. Further information regarding these and other risks
is included in our annual report on Form 20-F and other documents
filed with the Securities and Exchange Commission. Baidu does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law. All information provided
in this press release and in the attachments is as of the date of
the press release, and Baidu undertakes no duty to update such
information, except as required under applicable law.
For investor and media inquiries, please contact:
Sharon Ng
Baidu, Inc.
Tel: +86-10-5992-4958
Investor inquiries email: ir@baidu.com
Media inquiries email: intlcomm@baidu.com
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SOURCE Baidu, Inc.