After Telstra exits its $2.1bn stake in Autohome the Chinese auto online retailer subject of takeover

Less than a day after Telstra Corp. said it would sell a 47.7 per cent stake in Chinese online car retailer Autohome Inc., a consortium including Autohome’s chief executive announced a bid for the whole company.

Autohome chief executive James Zhi Qin, Boyu Capital, Hillhouse Capital and Sequoia China are offering about $US3.56 billion ($4.6bn) or $US31.50 a share for the company.

The offer is a 4.4 per cent premium to Thursday’s closing price. Autohome is listed on the Nasdaq and based in Beijing.

Late on Friday Telstra sold almost its entire stake in Chinese car sale website Autohome for $US1.6 billion. Telstra sold its stake in the online business to Ping An Insurance Group for $US29.55 a share.

Autohome shares closed at $US30.16 on Thursday, closing up 6.6 per cent Friday.

In February, Autohome said fourth-quarter adjusted net income rose 20 per cent, as revenue rose 46 per cent to 1.08 billion Chinese yuan, equal to about $US167 million at the time. Revenue exceed the company’s guidance as it posted strong increases in mobile traffic and dealer subscriptions.

On Friday Telstra chief executive Andrew Penn said that it was the right time for the telco to extract maximum value for its shareholders, as Autohome transitions from a pure online business to one with a substantial offline presence.

“Autohome has played an important role in building our presence in the Chinese technology sector and we look forward to working with Ping An and Autohome management as a minority investor,” Mr Penn said.

-Dow Jones Newswires, wires