Luckin Coffee Co-Founder Sells Stake In Car Inc, China’s Largest Car Rental Firm, To BAIC Subsidiary For US$180.6 Million


Chinese ride-hailing services provider UCar, which is controlled by Charles Zhengyao Lu, co-founder of scandal hit Luckin Coffee, said on Monday it will sell all its shares in Car Inc, the country’s largest car rental company, to a subsidiary of Beijing-based, state-owned car maker BAIC Group.

UCar said it will sell its 20.9 per cent shareholding, or no more than 443 million shares, in Car Inc to Jiangxi Jinggangshan BAIC Investment Management for up to HK$1.4 billion (US$180.6 million). At HK$3.1 a share, the sale comes 86 per cent lower than a peak of HK$22 a share recorded in May 2015. UCar said it will use the proceeds to repay loans secured against the stock, and that it aimed to optimise its debt structure.

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