A limousine services provider controlled by Lu Zhengyao, founder of scandal-plagued Luckin Coffee, has agreed to sell its stake in a major car rental company at a large premium, as Lu seeks cash to prop up his struggling business empire, reported Caixin.
Private equity firm MBK Partners has agreed to acquire the 20.86% stake in Hong Kong-listed Car Inc. from Ucar Inc. for nearly HK$1.8 billion ($232 million), according to a Tuesdayfiling with the Hong Kong Stock Exchange.
The deal would see MBK’s Indigo Glamour Co. Ltd. unit buy 442.6 million shares from Ucar for HK$4 per share, according to the filing — representing a large premium over the stock’s Tuesday closing price of HK$3.23.
Car Inc.’s stock plummeted in April afterLuckin revealedit had faked huge amounts of sales last year. Luckin’s own stock fell even more, losing most of its value, and was ultimately delisted from the Nasdaq.