Online used car dealer Uxin gains big, shares going up

China’s largest used car e-commerce company, Uxin’s shares surged over 14%.

Uxin and Golden Pacer, a Chinese financial technology platform, announced a term sheet to aid online financing.

Golden Pacer is valued at over US$789M in market capitalisation. Uxin will strip loan facilitation-related business to the company in exchange for $100M and some Golden Pacer shares.

Golden Pacer will help facilitate loans for Uxin’s online used car transactions and. Uxin will inspect and valuate Golden Pacer’s used car financing transactions.

“After the divestiture and through the business corporation with Golden Pacer, we will be able to focus all of our resources on online used car transactions,” Uxin founder and chief executive Kun Dai says.

Dai says China’s used car market has tremendous growth potential.

Uxin provide selling and purchasing services on second-hand cars, both online and offline, including car inspection, title transfer, warranty, financing and insurance.

The two companies will enter into transaction agreements and close the transaction in the second half of 2019.