(CBN - Global) April 18 -- Ping An Insurance Group Co. [SHA:601318] is to purchase a 47.7 percent stake in online auto sales platform Autohome Inc. [NYSE:ATHM] for USD1.6 billion.
The announcement was made by Autohome majority shareholder, Australian telecoms giant Telstra Corp. [ASX:TLS]. After the acquisition, Autohome is expected to privatize in preparation for listing on the Chinese A-share market.
"Autohome is going through a gradual transition from an online sales platform toward an offline one, and it will benefit from the strategic investments of Ping An Group. Ping An is a player in both the car insurance and finance markets," said Telstra CEO Andrew Penn.
In a related move, subsidiary Ping An Property and Casualty Insurance Co. signed an agreement on April 13 with Daimler AG subsidiary car2Go, the largest carsharing company in the world, to increase its presence in the car rental business.