Shenzhou Rent-a-Car, Lu Zhengyao, struggling to find another man

Original title: Lu Zhengyao, a car rental in China, struggling to find another man
Shenzhou Rent-a-Car has had many twists and turns on the way to find Panxia.
July 20,
Announced that after the group’s wholly-owned subsidiary SAIC Motor Hong Kong Investment Co., Ltd. signed a contract to acquire China Rent-A-Car, in the process of subsequent equity transfer agreement negotiations, new circumstances affecting the conclusion of the transaction occurred. Unanimously, in order to protect the company’s interests, SAIC Hong Kong decided to terminate the above transaction.
As soon as the announcement came out, China Rent-A-Car’s share price fell, closing at HK$2.93 in early trading, down 4.87% from the previous trading day. Before the opening in the afternoon, China Car Rental suspended trading on the Hong Kong Stock Exchange.
On July 2, SAIC Motor Hong Kong Investment Co., Ltd. and China UCAR signed the “Takeover Offer”. SAIC Hong Kong intends to acquire China UCAR and Amber Gem’s China Car Rental Co., Ltd. at a price of 3.10 Hong Kong dollars per share. No more than about 600 million shares, and the investment amount does not exceed HK$1.902 billion. It is understood that the total number of shares in China Car Rental acquired by SAIC Motor Hong Kong Investment Co., Ltd. accounted for approximately 28.92% of the latter’s total issued share capital. After the completion of the acquisition, SAIC will become the largest shareholder of China Car Rental.
But after 18 days, the acquisition plan was terminated.
However, on the same day, the SAIC Group announced that it would terminate the acquisition of China Car Rental, and then China UCAR announced that in order to optimize the company’s debt structure, it will transfer all its shares in China Car Rental to BAIC for a maximum of 1.372 billion Hong Kong dollars.
The announcement stated that after the completion of this transaction, the company will no longer hold shares in China Car Rental.
In fact, as early as June 1 this year, China Car Rental announced that its main shareholder, China UCAR, has reached a strategic cooperation agreement with BAIC Group. BAIC will acquire no more than 450 million shares from China UCAR. The total issued share capital of the company as of the announcement date was approximately 21.26%. And this happens to be all the shares of China Car Rental held by UCAR. After the transaction is completed. BAIC will become the largest shareholder of China Car Rental, and Lu Zhengyao will withdraw.
However, it is worth noting that the announcement of China Car Rental specifically stated that this so-called “strategic agreement” is not “legally binding.” In other words, this is an intention, nothing more. From the outside world, Lu Zhengyao’s move may be intended to boost stock prices. After China Car Rental announced that BAIC would acquire the news, the stock price of Car Rental in China went high on the trading day. It was different from the previous downturn. The increase was as high as 27%. As of the close of the day, the share price of Car Rental in China rose by 23%.
Although the two parties were once “cut off” by SAIC during the course of this cooperation, after SAIC stopped the acquisition, China Car Rental turned to BAIC again.
Of course, it is still unknown whether it will finally be implemented.
One background is that Lu Zhengyao is busy “cutting” with Shenzhou Car Rental.
Public information shows that the actual controllers behind the three listed companies of Ruixing Coffee, China UCAR, and China Rent-A-Car are all Lu Zhengyao. After Luckin Coffee revealed its performance fraud on the evening of April 2, Lu Zhengyao and the Shenzhou Department he controlled became a target of public criticism.
The capital market even gave stock prices a dive as a direct response.
On the second day after Ruixing Coffee exposed its financial fraud, China UCAR’s share price fell by more than 26%, and China Rent-A-Car’s share price dropped by more than 70%.
Obviously for Lu Zhengyao at that time, when he himself and Ruixing Coffee are deeply in a crisis of trust, it is the best policy to let the high-quality assets in his hands cut the seller in time. Among them, China Car Rental bears the brunt.
In fact, after Ruixing Coffee exposed the fraud, Lu Zhengyao not only resigned as chairman of the board of directors and non-executive director of China Car Rental, but also has been looking for a successor for the stock of China Car Rental.
There are many scandals.
First, China Car Rental’s current second largest shareholder, Warburg Pincus, is the parent company of Amber Gem. In the case of Lu Zhengyao’s sale of the shares in Shenzhou Car Rental, Warburg Pincus Investment reached an agreement with UCAR at the earliest and stated that it would acquire a total of 17.11% of Shenzhou Car Rental in two batches.
In May of this year, Warburg Pincus launched a due diligence investigation on China Car Rental, including assets, liabilities, operations, legal relations, and so on. But at the end of the month, Warburg Pincus quickly terminated the sale and purchase agreement.
After the termination of the sale and purchase agreement by Warburg Pincus, China Car Rental also issued an announcement, announcing the new acquisition.