Hertz Global Holdings Inc. sold a $100 million stake in CAR Inc., sending shares of the Chinese car-rental company that it invested in April 2013 lower.
CAR’s shares slumped as much as 7.3 percent in Hong Kong and traded at HK$12.88 at 10:08 a.m. Hertz had agreed to place 59.57 million shares to an undisclosed third party at HK$13.01 per share, representing a 5.6 percent discount to the closing price on Wednesday. Hertz still owns about 13.6 percent of the company after the sale.
Hertz bought a 19 percent stake in CAR in 2013 with the aim of driving greater outbound business from China as the Hertz brand becomes more established in the country. CAR, based in Beijing, held its initial share sale in Hong Kong in September 2014.
Representatives for Hertz didn’t immediately reply to an e-mail sent outside regular business hours seeking comment on the reason for the sale.
— With assistance by Kongho Chua