Geely Holdings denied the rumors of the acquisition of car rental in China.
On April 10th, it was reported that Geely Holding Group (Geely Holdings, 0175.HK) is negotiating the acquisition of Shenzhou Car Rental (0699.HK) related business. Geely responded to the surging news (www.thepaper.cn) that there is no such plan. Shenzhou Car Rental responded to the surging news that it would not comment.
Recently, car rental in China has been reported to be acquired more than once. Yesterday, it was reported that Ctrip is negotiating the acquisition of Shenzhou car rental, and integrating Yihe car rental business to make Ctrip car rental platform bigger. Subsequently, Ctrip responded to the media that the rumors were false news. The person in charge of car rental in Shenzhou told Peng Mei News that the reporter was not aware of this.
Due to the financial fraud of Ruixing Coffee, the share price of China Rent a Car plunged. According to the Financial Times, Lu Zhengyao is considering resigning the chairman of Shenzhou Car Rental to convince investors of the independent relationship between Shenzhou Car Rental and Ruixing Coffee.
As early as April 7, Shenzhou Car Rental issued an announcement to clarify that the company did not hold any American depositary shares or other securities of Ruixing Coffee, and The company is not involved in any commercial transactions of Ruixing Coffee. In addition, although Lu Zhengyao is the shareholder and chairman of Ruixing Coffee, he resigned as the company’s chief executive officer and changed his position as a non-executive director in April 2016. Since then, he has not participated in the daily management of the Group. Mr. Liu Jian, the chief operating officer of Ruixing Coffee, has ceased to serve as the department director of the company since 2015.