HTZ Hertz Global Holdings Inc

Rental company Hertz Global Holdings Inc. said Monday that its board formally approved the planned separation of its car-rental and equipment-rental businesses

Hertz said Larry Silber, who currently runs the equipment rental until, will become chief executive of that business when it becomes a separately traded entity. Hertz Global Holdings will change its name to Herc Holdings Inc., and it will operate the equipment-rental business under the stock symbol HRI.

Hertz Rental Car Holding Co. will change its name to Hertz Global Holdings and will manage the rental-car business. It will use the stock ticker HTZ, Hertz's current symbol. Both companies will trade on the New York Stock Exchange and are expected to begin trading on July 1. Hertz Global Holdings Chief Executive John Tague will continue in the same role at the new company.

A shareholder of the current Hertz Global Holdings with 15 shares will end up with three shares in the car-rental business and one share in the equipment-rental business when the deal is completed.

"The creation of these two public companies enables each to focus on their respective core businesses, thereby increasing the opportunity for both to create optimal shareholder value," Mr. Tague said.

The company also announced the full Herc board. It includes two former 3M Co. executives as well as two people associated with activist investor Carl Icahn. In December, Mr. Icahn reported that he increased his stake in the company. According to FactSet, he now owns 15%.

Hertz shares rose 4.3% to $10.48 in morning trading Monday.

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

(END) Dow Jones Newswires

June 06, 2016 11:15 ET (15:15 GMT)

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