ESTERO, Florida, March 14, 2016 /PRNewswire/ -- Hertz Global
Holdings (NYSE: HTZ) announced today that it has reached an
agreement to substantially reduce its equity position in CAR Inc.,
China's largest rental car
company, while at the same time extending its existing commercial
agreement between the two companies to 2023. Hertz has been a
commercial partner with CAR since 2013, and the extension enables
the company to participate in the anticipated growth of
China's car rental market.
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Hertz announced in 2015 that it intended to monetize its
investment in CAR Inc. and use the proceeds for general corporate
purposes. The company reached an agreement to sell 203,554,310
shares of CAR Inc. stock to UCAR Technology, Inc. on March 13, 2016, with expected proceeds of
approximately $240 million.
This transaction, together with two other share sales in
2015, reduces Hertz Global's ownership in CAR Inc. to approximately
1.7 percent of CAR Inc.'s total shares.
The commercial agreement between Hertz and CAR provides a
long-term platform for both companies. CAR will have use of
the Hertz brand, and Hertz customers will have access to car rental
and chauffeur services through CAR's locations in more than 700
locations across China, including
more than 60 of China's largest
cities. CAR also has an agreement with UCAR, a leading
ride-sharing company in China.
"Through our relationship with CAR Inc., Hertz has extensive
reach and brand presence in the rapidly growing Chinese market, and
our customers will continue to have a broad access to car rental
and ride services there," said John
Tague, Hertz Global Holdings president and chief executive
officer. "Extending our agreement through 2023 enables us to
work with CAR to further leverage our global network to grow rental
and car hire business into and out of China with business and leisure
travelers."
ABOUT HERTZ GLOBAL HOLDINGS
Hertz Global Holdings operates the Hertz, Dollar, Thrifty and
Firefly car rental brands in approximately 9,980 corporate and
licensee locations throughout approximately 150 countries in
North America, Europe, Latin
America, Asia, Australia, Africa, the Middle
East and New Zealand. Hertz
Global Holdings is the largest worldwide airport general use car
rental company with approximately 1,635 airport locations in the
U.S. and more than 1,320 airport locations internationally. Product
and service initiatives such as Hertz Gold Plus Rewards,
NeverLost®, Carfirmations, Mobile Wi-Fi and unique vehicles offered
through the Adrenaline, Dream, Green and Prestige Collections set
Hertz Global Holdings apart from the competition. Additionally,
Hertz Global Holdings owns the vehicle leasing and fleet management
leader Donlen Corporation, operates the Hertz 24/7 hourly
car rental business in international markets and sells vehicles
through its Rent2Buy program. The Company also owns Hertz Equipment
Rental Corporation ("HERC"), one of the largest equipment rental
businesses with approximately 280 locations worldwide offering a
diverse line of equipment and tools for rent and sale. HERC
primarily serves the construction, industrial, oil, gas,
entertainment and government sectors. For more information about
Hertz Global Holdings, visit: www.hertz.com.