Hertz Global Holdings Inc. agreed to sell most of its stake in Chinese rental car company Car Inc. for $240 million and said one of its executives is leaving Car's board.

The deal would reduce Hertz's stake to 1.73% from 10.23%.

Last year Hertz said it intended to monetize its investment in Car and use the proceeds for general business purposes. It sold shares twice in 2015.

Monday, Hertz said it would sell 203.6 million shares of Car, which is listed in Hong Kong, and receive about $1.18 on a per-share basis. The per-share price is lower than the $1.68 it received when it sold about 59.6 million shares and received about $100 million last fall.

In a release, Car said the shares were being sold to Ucar Technology Inc. and that Hertz executive James Peter Mueller would leave the board of Car. Last July, Mr. Mueller was appointed senior vice president for international sales, marketing and revenue management at Hertz.

Hertz also said that it had extended a commercial agreement with Car to 2023, allowing the company to continue to participate in China's growing rental car market.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

March 14, 2016 10:05 ET (14:05 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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