Hertz Sells $100 Million Worth of Stakes in Chinese Rental Car Brand
Hertz Global Holdings Inc. announced last week that the company had sold $100 million worth of stakes in the Chinese rental brand CAR Inc.
In a report from Bloomberg News, the decision by Hertz to sell a portion of its stake in the Chinese company caused the stock prices for CAR Inc. to drop. For example, prices in Hong Kong initially fell 7.3 percent after the news broke.
Originally, Hertz purchased a 19 percent stake in CAR Inc. in April 2013 to help further the brand’s presence in China as it continues to expand in Asia. CAR Inc. held its initial share sale in Hong Kong in September 2014.
The deal saw Hertz sell 59.57 million shares to an undisclosed third party for $13.01 per share on the Honk Kong market, according to Bloomberg.com. The selling price was 5.6 percent lower than the trading price when the deal was struck on Sept. 16.
Despite selling a majority of their chares in CAR Inc., Hertz still owns 13.6 percent of the stakes in the Chinese company. Bloomberg reached out to Hertz representatives for a response to the deal, but did not immediately receive a reply.
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