Cango Inc.: Selling the PRC Business to Ursalpha Digital Limited for US$351.94 Million
On April 3, 2025, Cango Inc. (NYSE: CANG) announced that it had entered into definitive agreements to sell its existing business in the People’s Republic of China (PRC) to Ursalpha Digital Limited, a company incorporated under the laws of British Virgin Islands. The total consideration for the sale, named as the “PRC Business Disposal,” amounts to approximately US$351.94 million in cash.
Background
On March 14, 2025, Cango disclosed that it had received a preliminary non-binding letter of intent from Enduring Wealth Capital Limited (EWCL) proposing the acquisition of control of the Company by EWCL and the disposal of its PRC Business to a buyer introduced by EWCL. However, the definitive agreements were signed with Ursalpha Digital Limited instead.
Terms of the Agreement
The initial payment for the PRC Business Disposal is approximately US$210.64 million on the closing date. The remaining amount will be paid based on the reduction in the credit risk exposure of the legal entities sold to Ursalpha Digital Limited due to outstanding balances of loans facilitated and financing leasing originated by these entities.
Impact on Cango
This transaction marks a significant milestone for Cango as it enables the company to focus on its strategic priority of expanding its business outside of China. The proceeds from the sale will be used to strengthen the Company’s balance sheet and support its growth initiatives.
Impact on the World
The PRC Business Disposal may have a ripple effect on the global financial market, particularly in the areas of consumer financing and automotive leasing. Cango is a leading player in China’s consumer finance market, and the disposal of its business may lead to changes in the competitive landscape. Additionally, the transaction could potentially impact the relationship between China and foreign investors.
Conclusion
Cango’s announcement of the PRC Business Disposal to Ursalpha Digital Limited for US$351.94 million is a strategic move that will help the company focus on its growth initiatives outside of China. The transaction is expected to have a significant impact on the global financial market, particularly in the areas of consumer financing and automotive leasing. As the situation develops, investors and industry analysts will be closely monitoring the progress of this deal and its potential implications.
- Cango sells its PRC Business to Ursalpha Digital Limited for US$351.94 million
- Initial payment of US$210.64 million on closing date
- Remaining amount based on reduction in credit risk exposure
- Proceeds to strengthen balance sheet and support growth initiatives
- Impact on global financial market, particularly in consumer financing and automotive leasing
