Haier responded to the details of the acquisition of Auto Home: premium of 13%, valuation within a reasonable range

Source: Visual China

Blue Whale News, February 21 (Reporter Zhai Zhichao)Recently, Haier Group’s Katechi acquisition of approximately 41.91% shares of Auto Home for US$1.8 billion has attracted widespread attention, but also left many questions in the market.

For example, is the purchase price reasonable? After the acquisition, are there plans to make major adjustments to AutoHome’s business structure or operating model? What changes will be brought to the future positioning and development strategy of the car home?

To this end, Blue Whale Technology also sent an interview letter to Haier as soon as possible. In its reply letter, Haier stated that before the U.S. stock market opened on February 20, the total market value of Autohome was US$3.8 billion, which also meant that Haier’s bid was about 13% higher than the latest market value of Autohome.

“The transaction price comprehensively considers various factors such as the market environment, industry prospects, Auto Home’s asset status, profitability and future development potential. Excluding the cash value of Auto Home, its business valuation is also within a reasonable range. rdquo; Haier said.

In addition, regarding whether the group will consider incorporating Katatic-related businesses into listed companies in the future, Haier said that we have just announced the transaction, and our current focus is to promote the smooth progress of the transaction, and we will also inform you of future business progress. rdquo;

The following is a record of the interview, which has been edited and revised:

Blue Whale Technology: Is the purchase price reasonable?

Haier:Based on Katac’s US$1.8 billion acquisition of a 41.91% stake in AutoHome, the total price for AutoHome is approximately US$4.3 billion. Before the U.S. stock market opened on February 20, AutoHome’s total market value was US$3.8 billion, which also meant that Haier’s bid was about 13% higher than AutoHome’s latest market value. The transaction price comprehensively considers various factors such as the market environment, industry prospects, Auto Home’s asset status, profitability and future development potential. Excluding the cash value of Auto Home, its business valuation is also within a reasonable range.

Blue Whale Technology: Will you consider incorporating Katatic-related businesses into listed companies in the future?

Haier:We have just announced the transaction, and our current focus is to promote the smooth progress of the transaction, and we will also inform you of future business progress simultaneously.

Blue Whale Technology: AutoHome already has a deep user base and influence in the industry. What changes will the introduction of Katac as a controlling shareholder bring to AutoHome’s future positioning and development strategy?

Haier:It will integrate Katechi’s leading advantages in technological innovation, user insight, consumer service system, and personal-in-one management model, and integrate Katechi’s online and offline integrated operations, especially its advanced store management experience, to fully empower the Car Home, and coordinate development in fields such as user in-depth experience, intelligent hardware links, and new automobile retail, and continue to strengthen the O2O intelligent interaction and comprehensive operation service capabilities of the Car Home.

Blue Whale Technology: How does Haier view the expansion potential of Auto Home in domestic and foreign markets? Do you plan to cooperate more with other automakers or automotive-industry-related companies in the future?

Haier:As China’s leading automotive service platform, AutoHome has long-term value for its user base and industry insights. Haier Katechi will support it in consolidating its market advantages. In the future, it will also open cooperation with upstream and downstream partners in the automobile industry chain based on ecological strategic needs to jointly promote high-quality development of the industry.

Blue Whale Technology: As the Internet platform of Haier’s automobile industry, how can Kataichi achieve coordinated development with Automobile Home after investing in Automobile Home? What are the preliminary plans in terms of business integration and resource sharing?

Haier:Auto Home’s O2O online and offline development strategy is coordinated with Katac’s strategy, and at the same time, both parties can complement each other in terms of business. After the transaction is completed, Auto Home will serve as a key hub of Haier’s automobile industry ecosystem, accelerating Katac’s construction of a new ecosystem in the automobile industry, improving the ecological layout of Haier’s digital economy industry, and ultimately better satisfying users ‘full-process and full-life cycle car use experience. In addition, the two parties will deepen cooperation in areas such as user in-depth experience, intelligent hardware connectivity and new automobile retail, enhance O2O intelligent interaction capabilities, and empower the automobile home through Haier’s supply chain management and store operation experience to accelerate the construction of a new automobile industry ecosystem.

Haier also looks forward to fully stimulating the vitality of the car home through the empowerment of people and single units, and works closely with the car home and Ping An Property and Casualty Insurance to continue to improve the service level of the car throughout the life cycle by improving the user experience.

Blue Whale Technology: This time, how will Haier take advantage of its technological advantages, such as the Internet of Things, intelligent manufacturing and other technologies, empower the Car Home and bring what new experiences to users? Are there plans to make major adjustments to AutoHome’s business structure or operating model?

Haier:After the transaction is completed, Auto Home will serve as a key hub of Haier’s automobile industry ecosystem. With the joint support of Haier and Ping An, it will continue to consolidate and develop existing businesses, including consolidating its competitive advantages in the vertical media field. In addition, Haier has accumulated long-term advantages in intelligent manufacturing, supply chain management, a deep understanding of users, and an advanced management model of integrating people into one.

After the completion of the future transaction, Haier and Katac will continue to support the development of Autohome in three aspects:

First of all, drawing on Haier’s rich experience in store and supply chain operations, Kataichi has initially built an online and offline integrated platform for used cars, especially the operation and management of offline store networks, which can provide rich offline operations for Auto Home. experience.

Secondly, Haier Kataichi will use its long-term accumulated user service capabilities to empower AutoHome, listen to the voices of platform creators and users to the greatest extent, maintain the platform openness and independent operation principles of AutoHome, and support platform creators and user content creation.

Finally, Haier’s innovative management model, one-in-one, will help Car Home build a more open entrepreneurial ecosystem, give employees more room for growth and display stage, and release employees ‘vitality.

Blue Whale Technology: What specific integration plans does Haier have in terms of IoT technologies such as smart cars and smart homes?

Haier:Overall, we hope to strategically deploy the automobile ecosystem to meet consumers ‘experience needs in the mobile home scenario, and achieve business collaboration through strategic investment in automobile homes. At the same time, we will leverage its platform advantages and combine Haier’s experience in the field of smart housing., further explore the construction of a home and car interconnection ecosystem to provide users with a more convenient and smarter life experience.