Tuhu Car (HKG:9690) agreed to acquire the entire issued share capital of Conti Trade Australia from a unit of Continental AG for an estimated AU$278.3 million at completion, according to a Thursday Hong Kong bourse filing.
The deal values the target group at an enterprise value of AU$403 million, with the final purchase price subject to a post-completion adjustment.
Conti Trade Australia owns mycar Tyre & Auto, which operates 279 tire, automotive service and repair stores across Australia.
Tuhu expects to fund the acquisition through internal cash resources and debt financing.
Its lending banks have approved financing of up to 1 billion yuan.
Shares of the firm were down nearly 2% in Thursday morning trade.