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Business

Didi to spin off car services unit in up to $1.5bn deal, say sources

SoftBank believed to be among investors

 The Didi Chuxing unit in question mainly handles car rental and maintenance services.   © Reuters

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, 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 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.

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