Luckin Founder to Cash Out of Rental Car Unit

Caixin Global | Jun 1, 2020 at 10:19 PM
  • A company controlled by the founder of scandal-plagued Luckin Coffee Inc. has agreed to sell its 21.26% stake in one of China’s leading car rental firms, potentially raising $100 million or more for Lu Zhengyao as his business empire comes under growing financial stress.
  • The first tranche sale was completed the same day of the announcement, and saw Ucar sell 4.65% of Car Inc’.s shares for HK$2.30 each, raising HK$227 million.
  • If BAIC buys the entire 21.26% of Car Inc’.s shares still held by Ucar, it would become Car Inc’.s second largest shareholder behind only Legend Holdings, parent of PC giant Lenovo.