Didi to spin off car services unit in up to $1.5 billion deal: sources

FILE PHOTO: Logo of Didi Chuxing is seen at its headquarters building in Beijing, China, May 18, 2016. REUTERS/Kim Kyung-Hoon

HONG KONG (Reuters) – Chinese ride-hailing giant Didi Chuxing Technology Co Ltd is planning to spin off its car services unit in a deal worth up to $1.5 billion ahead of the parent company’s planned initial public offering, people with direct knowledge of the matter said.

  • FILE PHOTO: Logo of Didi Chuxing is seen at its headquarters building in Beijing, China, May 18, 2016. REUTERS/Kim Kyung-Hoon
  • Didi is hoping to raise between $1 billion and $1.5 billion from the deal and has tapped investors including SoftBank Group (9984.T), an existing investor in the firm, the people told Reuters.

    The unit is mainly be involved in car rental and maintenance services and also providing drivers with optimized gas station deals, the people said, adding Didi is currently valuing the unit at between $2 billion and $3 billion.

    Didi declined to comment. SoftBank did not immediately respond to a request for comment. The people declined to be named as the information is confidential.

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