Hertz ready to pay up to US $ 500 million to buy back its shares

(New York) The car rental company Hertz, which is trying to come back to the forefront after filing for protection under US bankruptcy law during the pandemic, said on Wednesday it wanted to buy up to $ 500 million. US dollars of its shares.



Current shareholders of the company want to sell 37.1 million ordinary shares between 25 and 29 dollars per unit, the group said in a statement. A shareholder also offered to sell up to an additional 5.57 million shares within 30 days.

At the highest price, that would be $ 1.2 billion.

Hertz plans to spend between $ 250 million and $ 500 million to buy back some of these securities.

The famous car rental company has indicated that it will not make a profit from the sale of the shares and that it intends to finance the buyout with the cash at its disposal.

Hit hard by the pandemic, Hertz had recourse to Chapter 11 in May 2020, a device allowing a company riddled with debt to restructure itself safe from its creditors.

The group, which had suspended operations in the United States and Canada, officially exited the U.S. bankruptcy regime in June.

A few months later, its title was nevertheless withdrawn from the New York Stock Exchange.

It is now traded over the counter and was worth just over $ 32 on Wednesday morning.

Hertz recently filed an application to be listed on the NASDAQ trading platform under the symbol HTZ.

At the end of October, the group announced an order for 100,000 Teslas by the end of 2022 for its rental vehicle fleet, which it confirmed in the stock document on Wednesday.

Tesla boss Elon Musk said on Tuesday that no contract had been signed between his company and Hertz and that Hertz would not receive any discounts for the purchase of the vehicles.


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