Tiger Global Shows eHi Car Services Stake ~ market folly

Tuesday, June 2, 2015

Tiger Global Shows eHi Car Services Stake

Chase Coleman's hedge fund Tiger Global has filed a 13D with the SEC regarding shares of eHi Car Services (EHIC). The filing indicates Tiger Global owns 21.5% of the company with over 9.4 million shares.

This is a newly disclosed equity stake as they did not report one as of the end of the first quarter.  The filing was made due to activity on May 22nd when they entered into a Securities Purchase Agreement with the company where they acquired over 7.62 million shares at $6.00 per share.  They also acquired shares from other sellers and entered into agreements for cash-settled total return swaps as well. 

Additionally, Tiger Global has the right to purchase an additional 7,266,666 shares at the same price.  They also entered into a lock-up agreement which prevents them from selling until November 21st, 2015.  You can read all the necessary items regarding their position here.

For more from this hedge fund, you can view other Tiger Global portfolio activity here.

Per Google Finance, eHi is "a China-based holding company, which provides car rentals and car services to both individual customers and corporate clients. The Company utilizes mobile and Internet platforms to provide online to offline (O2O) mobility solutions. The Company operates its car rentals business primarily through its People's Republic of China (PRC) subsidiaries, Shanghai eHi Car Rental Co., Ltd. (eHi Rental) and eHi Auto Services (Jiangsu) Co., Ltd. (eHi Jiangsu), and their subsidiaries and branches."

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