- The stock price of MingZhu Logistics Holdings Ltd (NASDAQ: YGMZ) increased by over 10% pre-market. This is why it happened.
The stock price of MingZhu Logistics Holdings Ltd (NASDAQ: YGMZ) increased by over 10% pre-market. Investors are responding positively to MingZhu Logistics Holdings Limited, an elite provider of logistics and transportation services to businesses, announcing it has entered into a non-binding memorandum of understanding (MOU) to buy controlling equity interest of Zhejiang CheYi Network Technology Co., Ltd., an integrated online car-hailing and driver management services company.
This acquisition offers MingZhu’s customers additional platform enhancements and directly fits with MingZhu’s acquisition strategy — which includes adding financially accretive, best-of-breed companies, and products. CheYi Network was established in December 2015 as a comprehensive automobile service platform, providing a wide range of services to the automotive industry.
CheYi Network had built an integrated business platform with over 6,000 vehicles and drivers for ride hailing services under management. And its vehicles and drivers provide services to major mobility technology platforms like SAIC Mobility and T3 Mobility.
The completion of the proposed acquisition transaction is subject to further due diligence by the parties and negotiation and execution of definitive documents, including a share exchange or similar agreements, and the determination of a definitive price and other related documentation to complete the transaction. And the MOU is non-binding and there is no assurance that the transaction will be completed on the terms described above or at all.
“We are very excited to reach an agreement with the CheYi Network team. The company has done an excellent job building out an integrated platform featuring all the support and services drivers need. We view this business as a perfect fit for us and think it will serve as a centerpiece of our diversification strategy, which we plan to actively invest in and build upon. We believe that by infusing additional working capital and leveraging our operating expertise we can help to scale up the business even faster. This in turn will help to accelerate our growth strategy for many years to come based on the popularity and widespread reliance upon shared transportation services.”
— Jinlong Yang, Chairman and Chief Executive Officer of MingZhu Logistics Holdings Limited
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