CM Seven Star Acquisition Corporation (CM7Star), a Chinese blank check company, and Kaixin Auto Group, a used car platform and social networking Internet platform, have announced that each company’s board of directors has approved a definitive share exchange agreement.
Pursuant to this agreement, CM7Star will acquire 100 percent of the issued and outstanding shares of Kaixin in a transaction valued at around $454 million.
Pursuant to the share exchange agreement, Renren, Kaixin’s corporate parent will sell 100 percent of Kaixin’s equity holdings to CM7Star in exchange for an initial consideration of 28.3 million CM7Star shares.
Following the close of the transaction, Kaixin will continue to be led by its current management team. Kaixin will remain headquartered in Beijing, China. The transaction is expected to close in the first quarter of 2019.