Bitauto's Non-Binding Proposal Offers A Possible Arbitrage
About: Bitauto Holdings Limited (BITA)
by: Anthony H. Steinmetz
Summary
BITA received a non-binding proposal to take the company private for $16 per ADS.
Arbitrage spread currently sits around 6.5 percent.
Spread will shrink rapidly if a definitive merger agreement is reached between the company and the acquirer.
On September 13, Bitauto Holdings Limited (BITA) received a non-binding proposal from Tencent Holdings Limited (OTCPK:TCEHY) and Hammer Capital (together, "Buyer Consortium" or "Consortium") offering to purchase all outstanding shares not
