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

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.

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.

Reporting by Julie Zhu and Kane Wu in Hong Kong; additional reporting by Sam Nussey in Tokyo; Editing by Jennifer Hughes and Muralikumar Anantharaman

(Original source)