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

[HONG KONG] Chinese ride-hailing giant Didi Chuxing Technology Co Ltd is planning to spin off its car services unit in a deal worth up to US$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 US$1 billion and US$1.5 billion from the deal and has tapped investors including SoftBank Group, 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 optimised petrol station deals, the people said, adding Didi is currently valuing the unit at between US$2 billion and US$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.

REUTERS