PROPOSED BUSINESS COMBINATION: Kaixin Auto Group
ESTIMATED CURRENT FUNDS in TRUST: $213.8 Million*
CURRENT PER SHARE REDEMPTION PRICE: $10.36*
ENTERPRISE VALUE: $472.2 Million
*SPACInsider estimate a/o 4-26-19
CM Seven Star Acquisition Corporation CMSS), proposes to combine with Kaixin Auto Group (“Kaixin”), a premium used car dealership network in China and its owner, Renren Inc. (“Renren”) (NYSE:RENN). Pursuant to this agreement, CMSS will acquire 100% of the issued and outstanding shares of Kaixin in a transaction valued at approximately $454 million.
Kaixin was founded in 2015 by its corporate parent, Renren Inc., to capitalize on growth in China’s used car financing industry. The Company’s business model includes on-line and brick-and-mortar dealerships as well as a network of parties that provide a range of value-added and after-sale services. One of Kaixin’s competitive advantages is its tech-based solutions for sourcing, pricing, marketing and management systems. Kaixin’s goal is to leverage its established brand name to create a national dealership by consolidating the fragmented market in China.
- EarlyBirdCapital, Inc. is acting as exclusive financial and capital markets advisor to CM Seven Star Acquisition Corporation
- Loeb & Loeb LLP, Addleshaw Goddard (Hong Kong) LLP and King & Wood Mallesons are acting as CM Seven Star’s legal advisors.
- Simpson Thacher & Bartlett LLP and TransAsia Lawyers are acting as legal advisors to Kaixin Auto Group.
- Skadden, Arps, Slate, Meagher & Flom LLP is acting as counsel to Renren Inc.
- Maples & Calder (Hong Kong) LLP is acting as Cayman counsel to Kaixin and Renren.
CM SEVEN STAR ACQUISITION CORP. MANAGEMENT & BOARD
Chairman and CEO
Mr. Lin has served as a Managing Director of CM Asset Management (Hongkong) Company Limited, the investment manager of our sponsor, since March 2016. From November 2014 to December 2015, Mr. Lin founded and ran Gaohui Fund, a pan-Asia long/short equity fund. From February 2012 to October 2014, Mr. Lin was an Executive Director and a member of the investment committee of Keywise Capital Management (HK) Limited. From November 2005 to December 2011, Mr. Lin was a Principal and Chief Investment Officer of MICH Investments Limited. From August 2004 to October 2005, Mr. Lin was a Portfolio Manager for SSgA’s Emerging Market Equity group. SSgA is one of the largest institutional asset managers worldwide. From September 2002 to July 2004, Mr. Lin was a research analyst of Joho Capital, LLC in New York. From January 1998 to August 2000, Mr. Lin was a CPA at Ernst & Young LLP in the United States. Mr. Lin received a B.A. in Accounting from Franklin University in 1996, an M.S. in accounting from Kent State University in 1997, and an MBA from the Harvard Graduate School of Business Administration in 2002. He lectures at Peking University as an Adjunct Professor and is a standing committee member of the Shanghai Finance Federation.
Stephen N. Cannon
President, CFO and Director
Since October 2014, Mr. Cannon has been President of Everest Partners Limited, a privately owned investment firm, focused on Asian private investments. From June 2014 until July 2016, Mr. Cannon was CEO and a director of DT Asia Acquisition Corp, a Nasdaq-listed SPAC, which successfully consummated its merger with a Chinese company, China Lending Corporation (NASD: CLDC). From April 2010 until October 2014, Mr. Cannon was a Partner and Head of China for RedBridge Group Ltd, a boutique merchant banking firm focused on Chinese and Arabian Gulf cross-border investments. From June 2009 until October 2014, Mr. Cannon was a senior advisor at Ackrell & Co, a U.S. broker-dealer. From May 2007 until April 2010, Mr. Cannon served in various capacities with Hambrecht Asia Acquisition Corp., a Nasdaq-listed SPAC. Mr. Cannon was a co-founder, initial Chief Financial Officer and a director, and then VP of Acquisitions, for Hambrecht Asia Acquisition Corp. From July 2005 until October 2008, Mr. Cannon served as a Managing Director of Asian investment banking for WR Hambrecht & Co. Prior to WR Hambrecht & Co, Mr. Cannon worked at the following investment banking firms: Ackrell & Co (2003-2005); ABN-Amro Securities (2000-2002); Donaldson Lufkin & Jenrette (1994-2000); Smith Barney (1993-1994); and Salomon Brothers (1991-1993). Mr. Cannon graduated from the University of Notre Dame with a Bachelor’s degree in Mechanical Engineering and a Bachelor’s degree in Economics. Mr. Cannon is currently an advisor to the Royal family of Cambodia. In addition, he serves as a board member of the Cambodian Hotel Association.
Since September 2016, Mr. Chow has been the Head of Operations of CM Asset Management (Hongkong) Company Limited. From February 2014 to September 2016, Mr. Chow was Head of Operations and Risk Management of Neo-Criterion Capital Limited, a boutique asset manager focused on China A-Shares investment. From August 2012 to January 2014, Mr. Chow was Vice President of Operations of the Absolute Return Platform under the China Everbright umbrella, where he was responsible for running operations for this hedge fund platform. From 2005 to 2012, Mr. Chow held various roles in risk management and product control on both the buy and sell sides, including at Goldman Sachs, Deutsche Bank, HSBC, and Maple Leaf Capital. From 2000 to 2002, Mr. Chow started his career as a software designer at Nortel Networks in Canada. He graduated from Queen’s University of Canada with an MBA degree in 2003 and a Bachelor of Science degree in Electrical Engineering in 2000. Mr. Chow is a CAIA and FRM Charterholder.
Director of Investor Relations
Since June 2017, Miss Li has been the Head of Business Development of CM Asset Management (Hongkong) Company Limited, the investment manager of our sponsor. From March 2014 to December 2016, Miss Li was the Head of Investor Relations and Trader for Neo-Criterion Capital Limited, a boutique asset manager focused on China A-Shares investment. From December 2006 to September 2012, Miss Li held various roles within the Prime Brokerage/Prime Finance divisions both in the U.S. and Hong Kong including Goldman Sachs & Co in New York (December 2006 to August 2009), Citigroup Global Markets Asia Limited (February 2010 to January 2012) and Deutsche Bank AG in Hong Kong (March 2012 to September 2012). Miss Li began her career as an auditor at Deloitte & Touché LLP in New York from November 2003 to December 2006. Miss Li has held a Series 7 license with FINRA. Miss Li received a Bachelor of Science in CPA Accounting and Finance with cum laude from New York University Leonard N. Stern School of Business. She is a CAIA, CFA and CPA Charterholder.
Senior Vice President
Since January 2017, Mr. Ho has been the Head Trader of CM Asset Management (Hongkong) Company Limited. From March 2014 to January 2017, Mr. Ho worked with FB Investment Management Limited, a wholly owned subsidiary of Fubon Bank (Hong Kong) Limited and co-managed a mixed asset retirement fund. Mr. Ho was promoted to Head of FB Investment Management Limited from November 2015. From September 2010 to October 2013, Mr. Ho was a portfolio manager at HSBC Private Bank. From March 2008 to May 2010, Mr. Ho was the Chief Operating Officer of MICH Investment (Asia) Limited, responsible for the trading and operations team. From August 2005 to March 2008, Mr. Ho was a Senior Fund Manager with Piper Jaffray Asia Asset Management Limited where he co-managed a China-focused fund. From September 2000 to August 2005, Mr. Ho worked at Grand Alliance Asset Management Limited, most recently as Fund Manager, where he helped manage Funds with Asian focus. From January 1998 to August 2000, Mr. Ho worked in the treasury of Royal Bank of Scotland in Singapore, where he was involved in trading and making markets in money market products and currency forwards. Mr. Ho obtained a BSc(Econ) degree in Accounting and Finance with First Class Honors from the London School of Economics and Political Science and a MSc degree in Financial Engineering from City University in Hong Kong. He is a CFA Charterholder.
Board of Directors
Mr. Shao has been the Managing Director of CEC Capital, a financial advisory firm, since August 2017. From November 2015 to May 2017, Mr. Shao was a managing director and head of China TMT investment banking for Deutsche Bank in Hong Kong. Previously, from August 2010 to November 2015, Mr. Shao was a managing director with Macquarie Capital in Hong Kong and held multiple senior positions including head of Greater China TMT investment banking, head of Asia TMT equity research, head of China research and China strategist. Prior to that, Mr. Shao worked in different areas of capital markets in the financial services industry at Lehman Brothers, Deutsche Bank and Nomura International in both New York and Hong Kong since 2000. Mr. Shao obtained an MBA from the Fuqua School of Business of Duke University in 2000.
Ms. Smith worked as an attorney at the New Jersey law firm of Hartmann, Doherty, Rosa, Berman & Bulbulia (HDRBB) from September 2008 to January 2013. She will return to HDRBB in October 2017 after a period of family leave. After graduating from Harvard Law School with honors, Ms. Smith clerked for the Honorable Susan J. Dlott, U.S. District Judge for the Southern District of Ohio, from September 1998 to September 1999. Following her clerkship, from October 1999 to June 2000, Ms. Smith worked as an associate at Vorys, Sater, Seymour & Pease LLP, in Cincinnati, Ohio, and then was the Albert M. Sacks Clinical Fellow at the Criminal Justice Institute at Harvard Law School from August 2000 to June 2002. As a Sacks Fellow, Michele spent two years representing indigent adults and juveniles in criminal and delinquency proceedings in the Massachusetts courts, and also assisted the Criminal Justice Institute’s efforts to advocate for national and local reform of the criminal and juvenile justice systems. Ms. Smith worked as an associate at Stroock & Stroock & Lavan LLP in New York City, from September 2002 to October 2003, and at Bonny Rafel LLC, an ERISA litigation boutique in New Jersey, from September 2006 to August 2008. She is a member of the New Jersey and New York bars and is on inactive status with the Massachusetts and Ohio bars.
As of October 2017, Ms. Tseng will join CLSA Limited, a brokerage and investment group, as a Managing Director. Ms. Tseng has been an Executive Director with Morgan Stanley in the Institutional Equity Division since August 2010, servicing global financial managers, and will leave Morgan Stanley in September 2017. Prior to Morgan Stanley, from July 2006 to May 2010 Ms. Tseng was a Director at Deutsche Bank and BOCI, specializing in equity markets. Ms. Tsang graduated from the University of Calgary with a Bachelor of Arts in Economics, and earned a certificate from the Stanford Senior Executive Leadership Program (including the completion of the Stanford Directors’ College in June 2017).