I emailed the company previously and got NOTHING in response. Should I interpret the silence as an admission that the rumours are true? The report was about a potential transaction with Autohome, though it did suggest that iCar was in talks with a number of firms. I wonder if there's a bidding war going on behind the scenes.
Digital automotive classifieds group iCarAsia is understood to be in talks with Telstra-backed Chinese firm Autohome about a potential corporate transaction.
Malaysian-based iCar's share price is trading around six-month lows, while Chinese portals are battling a slowdown in their home market.
South East Asia has become an obvious target for Chinese companies seeking growth and iCar is understood to be in talks with a number of firms.
The discussions between iCar and Autohome are believed to be early-stage.
Any deal would need the blessing of Telstra, which owns more than 50 per cent of Autohome and dominates the Chinese group's board.
But ASX-listed iCar, worth about $160 million, would be small bite for Autohome, which is listed on the New Stock Exchange with a market value of $US3.2 billion.
Autohome is China's leading auto sales site and was floated in 2013. The company offers sales leads, data analysis and marketing services to assist auto manufacturers and dealers.
The Australian market leader Carsales owns 20.2 per cent of iCar and has long been seen as a potential suitor. Catcha Group is iCar's largest shareholder with a 33.2 per cent stake and also owns major holdings iProperty Group and Ensogo.
ICQ Price at posting:
95.5¢ Sentiment: Buy Disclosure: Held
