Hertz sells stake in Chinese company, but extends agreement
NEW YORK (AP) — Hertz Global Holdings will sell the bulk of its stake in China's CAR Inc. even as it extends a commercial agreement to between the car rental companies to 2023.
The agreement extension allows Estero, Florida-based Hertz to still hold a position in China's growing car rental market. China's Car will have use of the Hertz brand, giving Hertz customers access to rentals in more than 700 locations across China.
Overall, Hertz is selling just over 203 million shares of Car Inc. for proceeds of about $240 million to China-based UCAR Technology Inc., which provides chauffeured car services. The share sale will reduce Hertz's stake in Car Inc. to about 1.7 percent.