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Exclusive-Ping An seeks to sell $2.1 billion stake in Autohome -sources -Breaking

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© Reuters. FILE PHOTO – The logo for Ping An Insurance can be seen in Beijing (China), August 27, 2020. REUTERS/Thomas Peter

HONG KONG (Reuters). Reuters has learned that Ping An Insurance Group of China, a financial conglomerate, is looking to dispose of its 44% interest in Autohome portal’s services portal Autohome. Three sources familiar with the situation said that Reuters was informed by three sources.

People said that Ping An, the current largest shareholder of Beijing’s Autohome via an off-shore entity, had held discussions with several private and strategic equity investors in recent months.

Based on Authome’s current valuation, the stake would amount to around $2.15 trillion.

Two people said that Autohome is facing increasing difficulties in China, where electric vehicle makers (EVM) increasingly depend on their distribution networks for sales.

This has had a negative impact on the businesses of dealers operating in the largest auto market worldwide. It also forced many to reduce their budget for portals such as Autohome.

Autohome was founded in 2005 and serves as both an online marketplace for Chinese car traders and information platform for auto buyers.

As dealers and automakers use the platform to promote their brands and sell products, they pay advertising fees and more than 80%.

Ping An is China’s biggest insurer in terms of market value. However, they declined to comment about “market rumours”. Autohome is both listed in New York City and Hong Kong. However, they did not respond immediately to our request for comment.

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