CM Seven Star’s $454 Million Acquisition of Kaixin Auto Group


Simpson Thacher is representing Kaixin Auto Group (“Kaixin”) in connection with its acquisition by CM Seven Star Acquisition Corporation (“CM Seven Star”). Skadden represented Renren Inc., the owner of Kaixin Auto Group

CM Seven Star will acquire the outstanding shares of Kaixin from Kaixin’s parent, Renren Inc., in exchange for share consideration of CM Seven Star in a transaction valued at approximately US$454 million. The transaction is expected to close in the first quarter of 2019 and is subject to customary closing conditions, including the approval of the transaction by CM Seven Star’s shareholders.

Kaixin is a leading premium used car dealership network in China that operates on-line and brick-and-mortar dealerships as well as a network that provides a range of value-added and after-sale services. CM Seven Star is a blank check company listed on the Nasdaq and was formed for the purpose of entering into a business combination with one or more businesses.

The Simpson Thacher team for the transaction included Chris Lin (Picture), Brian Mathes and Yi-Ping Chang (Corporate and M&A – Hong Kong); Kirsten Jensen, Usman Arain and Christine Ristow (Corporate and M&A – Palo Alto); Marcela Robledo (Intellectual Property); Andrew Purcell and Sarah Julian Duffy (Tax); Adeeb Fadil and Timothy Mulvihill (Environmental); and Tristan Brown and Alyssa Ohanian (Executive Compensation and Employee Benefits).

Involved fees earner: Usman Arain – Simpson Thacher & Bartlett; Tristan Brown – Simpson Thacher & Bartlett; Yi-Ping Chang – Simpson Thacher & Bartlett; Adeeb Fadil – Simpson Thacher & Bartlett; Kirsten Jensen – Simpson Thacher & Bartlett; Sarah Julian Duffy – Simpson Thacher & Bartlett; Chris Lin – Simpson Thacher & Bartlett; Brian Mathes – Simpson Thacher & Bartlett; Timothy Mulvihill – Simpson Thacher & Bartlett; Alyssa Ohanian – Simpson Thacher & Bartlett; Andrew Purcell – Simpson Thacher & Bartlett; Christine Ristow – Simpson Thacher & Bartlett; Marcela Robledo – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Kaixin Auto Group;